A new wave of controversy is spreading in the cryptocurrency community after Bloomberg reported that Binance – the world's largest cryptocurrency exchange – had a role in providing technical support and promoting USD1, the stablecoin issued by World Liberty Financial Inc. (WLFI), closely linked to the family of former U.S. President Donald Trump.

Binance Accused of Supporting USD1: CZ Immediately Denies

According to sources collected by Bloomberg, Binance has played a significant role in building the technical foundation for USD1, including the development of smart contracts and deployment mechanisms on the blockchain. Not stopping there, the exchange is also said to have supported media and promoted the coin right from the time it was preparing to launch in March 2025.

Immediately after the report was published, Changpeng Zhao (CZ) – the former CEO of Binance – strongly rebutted. He called the article 'inaccurate and misleading in nature', while accusing it of being a deliberate media act aimed at distorting the market and tarnishing Binance's reputation. CZ affirmed that Binance 'did not participate in the deployment or support of USD1 in any official capacity'.

Strong Fluctuations of WLFI Token After Allegations

The news immediately caused significant market volatility. The price of WLFI – the governance token of World Liberty Financial – surged 90.75% within 24 hours after the report, reaching $456.94, according to data from CoinMarketCap at 11:59 PM on July 11, 2025 (Vietnam time). However, looking at a longer-term perspective, WLFI is still down 9.09% compared to 90 days prior – indicating lasting volatility despite short-term recovery.

Daily trading volume also increased by nearly 46%, a clear sign that investors are particularly paying attention to this token amidst a chaotic information environment. However, the market dominance of WLFI remains very low, and its future depends on the outcome of the ongoing internal governance vote – a vote that could pave the way for WLFI to be widely traded on public exchanges.

Trump and the $57.4 Million Income from USD1

The situation becomes even more sensitive as Donald Trump – the former President of the United States – officially announced in his personal asset report that he earned $57.4 million from business activities related to USD1, while holding 15.75 billion WLFI tokens in governance rights.

This raises many concerns that the combination of politics and blockchain technology could create dangerous precedents, as digital assets are used as tools for political lobbying or to influence public decision-making.

According to analysis from Coincu, Binance may face a new round of legal scrutiny due to the (though not fully verified) connection between this exchange and USD1 and the Trump family. In the context of Binance still undergoing investigations from the Department of Justice and the Commodity Futures Trading Commission (CFTC), this incident is likened to a 'last straw'.

Moreover, the involvement of a major global exchange like Binance with a politically charged stablecoin will lead lawmakers and financial regulators to tighten regulations on the crypto market in the near future.

Summary: When Cryptocurrency and Politics Intersect

The case of USD1 exemplifies a new and risky trend: the intersection of decentralized finance (DeFi) and traditional politics. While stablecoins like USDT or USDC have faced scrutiny over transparency, USD1 raises deeper questions about ethics, political influence, and the potential manipulation of digital assets. If Binance is indeed involved, the repercussions will not only stop at WLFI or USD1, but could also undermine trust in the entire developing DeFi ecosystem.