The claims came soon after President Trump pardoned Binance founder Changpeng “CZ” Zhao. However, Binance and its ex-CEO has denied any political involvement.
Binance Faces Political Backlash After CZ’s Pardon
Tensions between Binance and U.S. lawmakers have grown since President Trump pardoned Changpeng Zhao on October 23. Just a few days later, Binance’s U.S. branch announced it would list the USD1 stablecoin. This crypto asset is connected to the Trump family’s World Liberty Financial (WLFI) project.
The decision quickly sparked criticism from lawmakers, especially Senator Chris Murphy from Connecticut. He questioned the timing of the listing and suggested Binance might be trying to reward political allies. Murphy also accused the exchange of promoting crypto projects tied to the Trump family right after Zhao’s release.
Binance Defends Its Listing Decision
In response to the growing accusations, Binance issued a detailed statement rejecting any claims of political involvement. The company explained that all new listings, including USD1 and WLFI, undergo a comprehensive internal review, legal, and compliance checks.
The exchange emphasized that both tokens are already traded on more than 20 major platforms such as Coinbase, Robinhood, and Kraken. It has also announced plans to list the tokens months before Changpeng’s pardon.
According to Binance, the listings were part of normal business operations, approved by its core committee well before the recent political developments. The company expressed concern that even standard business decisions are now being unfairly interpreted as politically motivated actions.
Binance Faces New Scrutiny Over Alleged Trump Family Links
The controversy comes amid ongoing tensions between Binance executives and several U.S. senators. Earlier this month, Senator Elizabeth Warren accused Changpeng Zhao of concealing fraud-related activities. In response, Zhao filed a defamation lawsuit against her, claiming that the allegations were baseless and damaging to his reputation.
A recent report added more detail to the issue. It claimed that during the election period, Zhao’s representatives held informal discussions with Trump allies. These discussions reportedly focused on finding possible solutions to Binance’s legal challenges in the United States.
Sources indicated that these talks may have included a proposal for a potential partnership with a Trump family business venture. After Trump’s election win, new reports surfaced about Binance’s next steps. Reports claimed the company created a senior task force to explore possible partnerships with the Trump family’s WLFI project.
According to people familiar with the matter, the goal was to secure a business relationship that could ease regulatory pressures and rebuild Binance’s position in the U.S. market. Despite growing rumors, Zhao has publicly denied any plans to return to Binance in an executive capacity.
The company says its operations remain under its current leadership structure. It also noted that all major decisions follow established governance procedures.
The post Binance Under Fire for Listing USD1 After CZ’s Pardon appeared first on BitcoinLinux.com.
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Author: coinmaker