Binance Founder Corrects Wrong Reportage About TRUMP Digital Coin

Binance founder Changpeng ‘CZ’ Zhao has recently addressed false reports linking the TRUMP digital coin to a $200 million investment deal involving Abu Dhabi’s MGX

Binance founder Changpeng "CZ" Zhao has dispelled rumors linking the TRUMP digital coin to a $2 billion investment deal involving Abu Dhabi's MGX and Binance.

Earlier reports suggested that the TRUMP token played a role in the transaction, which saw a private investor invest $2 billion in Binance's Abu Dhabi-based entity. However, CZ clarified that the deal was completed using the USD1 stablecoin, unrelated to the Trump family.

In his latest post on X, CZ responded to misinformation about the $2 billion MGX investment in Binance.

Many news articles are reporting this wrong. The deal was completed using USD1 stablecoin, not any 'Trump' digital coin. It was a private investor investing $2 billion in the Binance Abu Dhabi entity.

The payment could come in any currency the payer prefers, e.g., BTC, AED, USD, or USD1. After the receiver receives the…

— CZ Binance (@binancecz) October 27, 2024

The Binance founder explained that the transaction could be paid in any currency the investor preferred, such as Bitcoin, dirham, dollar, or USD1. He added that after receiving funds, it is at the discretion of the receiver to convert them to other currencies depending on market conditions.

Zhao also mentioned Binance's reputation for having the best global liquidity, simplifying such large transactions. CZ's statement aimed to clear the air and dispel the misleading claims linking the TRUMP memecoin to the deal.

This post follows reports that the private investor used the USD1 stablecoin issued by World Liberty Financial (WLFI), a firm linked to the Trump family, for the MGX investment.

The connection has drawn scrutiny, especially since the Trump family is reportedly considering acquiring a stake in Binance US, the American branch of the exchange.

Earlier reports stated that Binance initiated talks with Trump's allies in 2024 to strike a deal to revive Binance US. This would also see the Trump family take a stake in the exchange, while the president's daughter, Ivanka Trump, joined the Binance US board.

However, CZ denied involvement in any such deal or discussions about seeking a presidential pardon.

The use of USD1 stablecoin in a major investment like the MGX deal has raised questions about the growing ties between World Liberty Financial and the crypto exchange. However, CZ maintains that the stablecoin is simply one of many currency options available for transactions and does not imply deeper involvement.

President Donald Trump and Controversial Crypto Ties

It is worth noting that the relationship between Binance, the Trump family, and the crypto market has attracted the attention of US lawmakers.

Earlier this year, Democratic Senators, including Elizabeth Warren and Chris Van Hollen, asked the Treasury and Justice Department to investigate the entities’ connection.

The plan was to clarify Binance's relationship with the Trump family. This comes after Binance faced regulatory problems and suffered a penalty for anti-money laundering violations.

Unfortunately, the Trump-linked World Liberty Financial's role in issuing the USD1 stablecoin, which was part of the MGX deal, further complicates the assertions.