Zhao disputes report that Binance sought Trump-linked USD1 for MGX's $2 billion investment
Crypto News reports MGX agreed to invest $2 billion in Binance in early 2025 using World Liberty's USD1, and that Zhao disputes The Wall Street Journal on who chose the stablecoin.
Why it matters
A Trump-family stablecoin sits in the settlement path of a $2 billion exchange investment alongside a pardon for that exchange's former CEO, which is the part regulators and stablecoin issuers would have to answer for. The significance is limited for now because one aggregator outlet is the only source here and the two central claims, who requested USD1 and whether the deal touched the pardon, are disputed.
Where the sources disagree
Whether the MGX and World Liberty business touched the pardon of Zhao
World Liberty said it had no involvement in pardon decisions
Crypto News (CryptoNews.net)
The report described criticism linking the business relationship and clemency but did not establish a link
Crypto News (CryptoNews.net)
Crypto News reports lobbying payments and political criticism alongside the deal while World Liberty denies any role in pardon decisions, and the report itself stops short of establishing a link.
Key facts
Emirati investment firm MGX agreed to invest $2 billion in Binance in early 2025, and the transaction used USD1 issued by World Liberty.
2,000,000,000 USDReported by Crypto News (CryptoNews.net)
MGX said it evaluated several stablecoins and chose USD1 for business suitability.
Reported by Crypto News (CryptoNews.net)
The Wall Street Journal reported that Binance specifically requested USD1, and Zhao said MGX made the choice instead.
Disputed figureReported by Crypto News (CryptoNews.net)
Zhao told the Times he had planned to sell the tokens gradually, had not intended to destroy FTX, and that Binance lost $500 million.
500,000,000 USDReported by Crypto News (CryptoNews.net)
Trump pardoned Zhao in October 2025 after Zhao pleaded guilty to violating an anti-money-laundering law.
Reported by Crypto News (CryptoNews.net)
The Times reported that Binance paid $2.1 million to a lobbying firm for services that included executive relief.
2,100,000 USDReported by Crypto News (CryptoNews.net)
World Liberty said it had no involvement in pardon decisions, and Crypto News said its report described criticism linking the business relationship and clemency without establishing a link.
Reported by Crypto News (CryptoNews.net)
Democratic lawmakers criticized the arrangement and Senator Richard Blumenthal called it an effort to gain political favor, which Zhao denied.
Reported by Crypto News (CryptoNews.net)
What happened
Crypto News published an account of Changpeng Zhao's Binance ties that draws on the Times and The Wall Street Journal. Emirati investment firm MGX agreed to invest $2 billion in Binance in early 2025 using USD1, a stablecoin issued by World Liberty, the company President Donald Trump founded with his sons, and the deal gave World Liberty funds to back its stablecoin reserves. The account splits on how that stablecoin was chosen: MGX said it evaluated several stablecoins and picked USD1 for business suitability, The Wall Street Journal reported that Binance specifically requested USD1, and Zhao disputed that account and said MGX made the choice, adding that he preferred Bitcoin while the Emiratis preferred stablecoins because of price volatility. On FTX, Zhao told the Times he had planned to sell the tokens gradually and had not intended to destroy the exchange, and that Binance lost $500 million. Trump pardoned Zhao in October 2025 after his guilty plea for violating an anti-money-laundering law; the Times reported Binance paid $2.1 million to a lobbying firm for services that included executive relief, Senator Richard Blumenthal called the arrangement an effort to gain political favor, Zhao denied wrongdoing, and World Liberty said it had no involvement in pardon decisions. Crypto News is the only outlet in this set, so who chose USD1 and any link between the MGX business and the clemency stay contested and unconfirmed.
How the story developed
- First report
First report by Crypto News (CryptoNews.net)
Inside CZ’s Binance Story: FTX, USD1 and Trump Ties
- Update
MGX agrees to invest $2 billion in Binance using USD1
The deal settled in USD1 issued by World Liberty, and MGX said it picked the stablecoin after evaluating several options.
- Official statement
Trump pardons Zhao
The October 2025 pardon followed Zhao's guilty plea for violating an anti-money-laundering law.
- Update
Emirati-backed firm takes a stake in World Liberty
The stake was acquired before Trump's inauguration, and Democratic lawmakers later criticized the arrangement.
- Update
Lobbying payment tied to executive relief reported
The Times reported Binance paid $2.1 million to a lobbying firm for services that included executive relief.
- Update
Zao disputes who selected USD1
Zhao rejected the account that Binance requested USD1 and said MGX chose it, while MGX said it evaluated stablecoins on business suitability.
- Update
Crypto News publishes its account of Zhao's Binance ties
The report cites the Times and The Wall Street Journal and is the only coverage of this story in the desk set.
Affected entities
Also mentioned: United Arab Emirates
Original sources
| Publisher | Report | Role | Published |
|---|---|---|---|
| Crypto News (CryptoNews.net) Aggregator | Inside CZ’s Binance Story: FTX, USD1 and Trump Ties | Original |
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