Binance Under Fire Over USD1, WLFI Listings After CZ’s Trump Pardon
Binance has been forced to respond to a growing storm of criticism following accusations that the exchange had given a helping hand...
Quick overview
- Binance is facing criticism for allegedly favoring Trump-associated crypto ventures following a pardon granted to its CEO, Changpeng Zhao.
- US lawmakers are concerned that Binance's support for projects like World Liberty Financial and the USD1 stablecoin appears too cozy with Trump.
- Binance defends its actions as standard business practices, asserting that all decisions are legally reviewed and based on market demand.
- Zhao has denied any connection between the pardon and Binance's support for Trump's projects, emphasizing the company's commitment to blockchain innovation.
Binance has been forced to respond to a growing storm of criticism following accusations that the exchange had given a helping hand to some very Trump-associated crypto ventures just after the President had granted a pardon to its boss, Changpeng Zhao (CZ).
US lawmakers are saying that Binance has been giving preferential treatment to family projects linked to Trump, like a thing called World Liberty Financial (WLFI) and their dollar stablecoin, which has raised all sorts of questions over whether this was just good old business practice or if Binance was trying to curry favor with the Trump camp.
The firestorm erupted just days after Trump granted Zhao a pardon, and Binance suddenly allowed people to put money into a new stablecoin called USD1. This move really didn’t fly with one of the US senators, Chris Murphy, who accused Binance of getting right in bed with the types of financial initiatives backed by the Trumps.
Binance has responded, saying that any decisions to list a new coin are carefully reviewed and fully in line with the law. They also pointed out that USD1 and WLFI are already available on over 20 exchanges, including Coinbase, Robinhood, and Kraken.
- Senators’ main concern: That the listings look all too cozy with Trump
- Binance’s side of the story: These were just sound business decisions checked and cleared by all the right authorities.
- And what has Mr Zhao been up to? – Well, he’s gone ahead and sued Senator Elizabeth Warren for (among other things) accusing him of being a bit dodgy
#Binance has been hit with a fresh wave of accusations after #DonaldTrump pardoned its founder #CZ.
US lawmakers, including Senator Chris Murphy, have accused Binance of supporting #Crypto projects linked to the Trump family, such as #WLFI & #USD1 stablecoin. pic.twitter.com/rANa8PYhRs
— CRYPTO HEADLINES (@AltcoinRay98768) October 30, 2025
Binance has said it is getting really worried about how all the normal business stuff is getting mixed up with politics and has said that decisions like this are made because of what people are asking for, not because of politics.
US Lawmakers Question Links To Binance and Trump
According to a new report from the Wall Street Journal, before the last election, Zhao’s team was in talks with some of Trump’s people to sort out some of the ongoing problems that Binance was having in the US. Apparently, these talks were about possible collaboration with the Trump family’s own blockchain projects.
It’s not clear whether any of this turned into a proper deal, but what is known is that after Trump won the election, Binance formed a special team to explore a partnership with World Liberty Financial. This appears to have been an attempt to boost Binance’s standing in Washington amid the regulatory problems it was facing.
Zhao has since said he has no plans to return to Binance and that the idea he received a pardon in exchange for Binance’s support of Trump’s projects is complete nonsense.
Democrats need to start bringing attention to Trump’s massive financial fraud in crypto.
CZ’s pardon after the USD1 collab, $Trump $Melania and $WLFI, the obvious manipulation via tariff threats
We want justice, hopefully the democrats have something to offer.
— Squawk Hawkins (@SquawkHawkins) October 30, 2025
Binance Reasserts Neutral Market Position
Binance is keen to say that its decisions are driven by market conditions and what people want, not by a project’s origin. Executives have stressed that they want to be at the forefront of blockchain innovation, meaning supporting projects regardless of their origin.
As the US and the crypto world grow increasingly locked in a standoff, Binance’s case highlights just how much the regulatory and political worlds influence how the market sees things. With USD1 and WLFI becoming more popular across exchanges, Binance is now facing the twin challenges of staying compliant and maintaining its reputation amid an increasingly charged climate.
- Check out our free forex signals
- Follow the top economic events on FX Leaders economic calendar
- Trade better, discover more Forex Trading Strategies
- Open a FREE Trading Account
Save