Zhao Rejects Allegations of Quid Pro Quo
Former Binance CEO Changpeng “CZ” Zhao has publicly denied allegations that his presidential pardon from Donald Trump was tied to any deal with World Liberty Financial (WLFI), a crypto project reportedly connected to the Trump family.
In his first detailed comments since the rumors surfaced, Zhao firmly rejected claims that Binance had supported WLFI in exchange for political favors.
Speaking in an interview, he clarified that although he met Eric Trump once at a Bitcoin conference in Abu Dhabi, there were “no negotiations, no dialogue, and no business relationship” with WLFI.
“That is totally wrong,” Zhao said. “There was never any agreement or discussion about a pardon.”
Background of the Allegations
Zhao’s statement follows media reports, including those from the WSJ, alleging that Binance was involved in a $2 billion investment deal between WLFI and Abu Dhabi-based MGX, using WLFI’s stablecoin, USD1.
The reports claimed this deal influenced Trump’s October 2025 pardon of Zhao, who had pled guilty in 2023 to failing to maintain an effective anti-money-laundering program at Binance.
Binance and Trump's Statements
Current Binance CEO Richard Teng also refuted the claims, stating that Binance had no role in the selection of USD1 for the MGX transaction. “That decision was made entirely by MGX,” Teng said, distancing the company from any political or financial link to WLFI.
Trump, for his part, has also dismissed suggestions of a backroom deal, saying he did not personally know Zhao and issued the pardon “at the request of a lot of very good people.” He described the case as a “reach by the prior administration,” portraying his decision as a correction of past overreach.
Broader Regulatory Context
Meanwhile, U.S. lawmakers are pushing ahead with a digital asset market structure bill aimed at defining crypto regulation and potentially shifting oversight to the CFTC. As Congress nears the end of its 2025 session, bipartisan talks have resumed, reflecting growing urgency to bring clarity to the rapidly evolving crypto landscape.