World Liberty Financial and Binance Push Back Against Allegations of Joint Trump-Themed DeFi Project Promotion

Key players from the crypto sector, namely World Liberty Financial and Binance, are pushing back against allegations suggesting they jointly promoted a decentralized finance project

Key players from the crypto sector, namely World Liberty Financial and Binance, are pushing back against allegations that they jointly promoted a decentralized finance project associated with Donald Trump.

The controversy arose following a Wall Street Journal article which implied Binance founder Changpeng Zhao had supported foreign outreach for the DeFi platform, according to The Block.

Zak Folkman, a co-founder of World Liberty Financial (WLFI), took to social media on Friday to firmly dismiss claims that Zhao, commonly known as "CZ," acted as a behind-the-scenes facilitator for WLFI or its co-founder, Zach Witkoff.

Describing the idea as "laughable," Folkman asserted it was categorically untrue. The Journal article had hinted at connections between Zhao and WLFI's efforts to establish a presence in countries like Pakistan, Abu Dhabi and Kyrgyzstan. However, the report offered few specifics about the nature or outcome of those alleged introductions.

The article mentioned that Witkoff and Zhao are reportedly friends but stated, via WLFI's spokesperson, that Zhao had no formal involvement in any of WLFI's outreach.

Binance responded similarly, portraying Zhao as a figure promoting crypto innovation across the globe. The company added that it would welcome any role which helps position the United States as a global crypto hub.

In his own posts on X, formerly Twitter, Zhao not only denied the claims but also suggested a broader effort to undermine Binance.

Alluding to unnamed venture capital backers of U.S.-based crypto exchanges, Zhao hinted at their potential involvement in funding negative press campaigns to sideline Binance's influence.

"Rumor has it that a major VC… is lobbying hard against 'Binance helping U.S. to become the capital of crypto,'" Zhao wrote. "Millions paid in lobbying efforts. Fear of competition."

Both Binance and WLFI have been subject to regulatory scrutiny in recent months, particularly in light of past legal issues involving Zhao.

Earlier this year, Zhao pleaded guilty to violations of anti-money laundering laws and paid a $50 million fine. Binance agreed to a staggering $4.3 billion settlement in the same case.

Zhao served four months in prison and has since returned to public activity, recently confirming he applied for a presidential pardon from Trump.

WLFI, which positions itself as aligned with Trump and has referred to him as its "chief crypto advocate," recently launched a stablecoin named USD1.

The token is pegged to the U.S. dollar and was used this month by Abu Dhabi's MGX investment firm in a $2 billion transaction that involved Binance.