According to a Bloomberg report, cryptocurrency exchange Binance played a significant role in the development and promotion of stablecoin USD1 launched by World Liberty Financial (WLF) linked to Donald Trump and his sons.
Binance's Role in USD1
Sources from Bloomberg indicate that Binance was involved not only in the code development of USD1 but also in its promotion and one of the largest transactions utilizing the stablecoin.
MGX Investments and USD1 Usage
WLF unveiled USD1 on March 4, and shortly thereafter, Abu Dhabi-based investment firm MGX announced a $2 billion investment in Binance using USD1 to finalize the deal. Eric Trump, a co-founder of WLF, confirmed in May that the deal was settled using USD1. Reports state that around 90% of the USD1 involved in the transaction remained in Binance-controlled wallets, potentially earning millions for the Trump family.
Political and Legal Implications
The connection between Binance and a company closely tied to the U.S. president raises concerns over conflicts of interest and political favoritism. This development comes as Congress is discussing new legislation to regulate stablecoins. Additionally, Trump's increasing involvement in crypto, including the TRUMP memecoin, has garnered attention from lawmakers and the public alike. Earlier reports highlighted that former Binance CEO Changpeng 'CZ' Zhao, who recently served time for a felony, sought a pardon from Trump to potentially return to a leadership role in the crypto industry.
The ties between Binance, WLF, and the USD1 stablecoin raise significant questions about regulation and ethics in the fast-evolving cryptocurrency landscape, in addition to adding new dimensions to the political landscape in the U.S.
