Binance CEO Richard Teng has reportedly denied allegations that the company chose to use a stablecoin issued by a cryptocurrency firm backed by the Trump family as part of a multi-billion dollar transaction.
According to a CNBC report on Tuesday, Teng stated that Binance "was not involved" in the decision to use USD1, a stablecoin launched by the Trump family's World Liberty Financial, for a $2 billion deal with Abu Dhabi-based company MGX.
The Binance CEO spoke amid scrutiny from several lawmakers, following U.S. President Donald Trump's pardon of former CEO Zhao Changpeng ("CZ"), which sparked allegations of corruption and "pay-to-play" politics.
"MGX decided to use USD1 for the transaction as a strategic investor of Binance… We were not involved in that decision," Teng said, according to CNBC.
MGX's initial $2 billion investment in Binance was announced in March. However, the deal came under additional scrutiny after one of the president's sons, Eric Trump, co-founder of World Liberty Financial, stated that the financing deal would be settled using USD1, allowing the Trump family business to profit from the transaction.
After Trump issued a presidential pardon for CZ on October 23, he stated in a 60 Minutes interview that he did not know who the former Binance CEO was. The president suggested that the Justice Department under the Biden administration unfairly charged Zhao Changpeng, despite the former CEO pleading guilty as part of a $4.3 billion settlement with U.S. authorities regarding the exchange's anti-money laundering program.
Despite Teng's claims, a Bloomberg report from July cited three anonymous insiders who said Binance was responsible for developing part of the code behind USD1. In response to that report, Zhao Changpeng hinted that he might file a defamation lawsuit against the news organization.
U.S. lawmakers have also been questioning the connections between the U.S. president and his family with Binance.
In October, Connecticut Senator Chris Murphy stated that Binance's independent legal entity, Binance.US, was "promoting Trump cryptocurrency," following a week after Trump "pardoned the owners of Binance."
Massachusetts Senator Elizabeth Warren also raised similar allegations involving CZ's relationship with the president, prompting another threat of a lawsuit regarding these claims.
Related: CZ's Giggle Academy distances itself from GIGGLE token amid price volatility
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