Binance founder Changpeng Zhao (CZ) refuted information regarding a presidential pardon related to contracts with the financial organization linked to Trump.
Mr. CZ stated that the request for a pardon was not related to supporting the development of the USD1 stablecoin from World Liberty Financial. A Bloomberg report previously accused Binance of playing a key role in this project; however, CZ denied any direct connection.
MAIN CONTENT
Changpeng Zhao denied the allegations of seeking a pardon related to cooperation with the Trump financial organization.
The USD1 stablecoin, supported by Binance, currently has a market capitalization of 2.2 billion USD, making it the fifth-largest stablecoin.
The BNB market reacted slightly to the news; Glassnode data recorded a slight decrease in on-chain activity.
What are the allegations surrounding Changpeng Zhao and Binance?
Changpeng Zhao openly denied that seeking a pardon was to shield cooperation with the Trump-backed financial company. Bloomberg reported that Binance developed the Smart Contract for the USD1 stablecoin, launched in March 2025, currently ranked fifth in the market with a market capitalization of 2.2 billion USD.
The report indicates that Binance has widely promoted USD1 to 275 million users. The MGX Group (Abu Dhabi) has invested 2 billion USD through this stablecoin, instead of choosing a competing stablecoin. However, there is no clear evidence that World Liberty Financial paid Binance or CZ personally to develop the stablecoin.
“Binance always operates transparently and complies with international law; seeking a pardon is a personal decision unrelated to cryptocurrency projects.”
Changpeng Zhao, CEO of Binance, stated in July 2025
Why did Changpeng Zhao confirm seeking a pardon but deny the timing?
In 2023, Binance and CZ faced heavy penalties totaling 4.3 billion USD and 50 million USD, respectively, for violating anti-money laundering laws in the United States. CZ was forced to resign as CEO and served 4 months in prison. Long-standing questions about his ties to the Trump family have attracted attention.
While some reports suggest that CZ sought a pardon in May 2025 immediately after supporting the World Liberty stablecoin, CZ denied this information and called it inaccurate rumors. However, he later admitted to having applied for a pardon but not at the time frame mentioned by the press.
How is the impact on the BNB market in light of this information?
The information surrounding the request for a pardon and cooperation with the financial organization related to Trump has caused market reactions. Glassnode data shows that daily active addresses on the BNB network dropped by 5% to 1 million, while on-chain trading volume decreased by 20% to 467 million USD.
However, the Funding Rate remains stable, indicating that investor sentiment is not overly panicked. As of now, the price of BNB is trading around 690 USD, up 14% from the low in June 2025.
“Despite some minor fluctuations, BNB still retains its allure due to its long-term potential and the trust from the global investment community.”
Analyst Glassnode, July 2025
Frequently Asked Questions
Does Changpeng Zhao have any direct ties to Trump's financial organization?
Mr. CZ denied having any partnership or receiving money from this organization, only acknowledging that Binance provided technical support for the USD1 stablecoin.
Does CZ's request for a pardon affect Binance?
The request for a pardon is a personal matter and does not directly affect Binance's operations or the current CEO's authority.
What position does the USD1 stablecoin currently hold in the market?
USD1 is the fifth-largest stablecoin globally, with a market capitalization of 2.2 billion USD as of July 2025.
How did the BNB market react to this news?
The market experienced a slight decrease in on-chain activity and active addresses, but the price of BNB still increased compared to the recent low.
Is Binance penalized for violating anti-money laundering laws in the United States?
In 2023, Binance and CZ were fined a total of more than 4.35 billion USD for violating anti-money laundering laws in the United States.
Source: https://tintucbitcoin.com/cz-bac-bo-cao-buoc-2-ty-usd/
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