Binance founder and former CEO Changpeng 'CZ' Zhao has publicly refuted allegations of business relationships with President Donald Trump's family, labeling the claims a "full-on misunderstanding." Speaking at the World Economic Forum in Davos in an interview with CNBC, CZ stated emphatically, "There's no business relationships whatsoever." He attributed the rumors to public overinterpretation of events following his presidential pardon in October 2025.
The controversy stems from a $2 billion investment Binance received in March 2025 from MGX, a state-owned investment company in Abu Dhabi. Instead of a traditional wire transfer, MGX paid using USD1, a stablecoin created by World Liberty Financial (WLFI), a crypto firm launched by Trump's family. CZ clarified that the payment method was the investor's choice, not his. "MGX is the investor. They choose USD1," he said, adding that his request was simply to be paid in crypto to avoid dealing with banks. He stressed that accepting the stablecoin did not imply an investment in or business with the issuer, noting Binance converted the USD1 to other assets over time.
David Wachsman, a spokesperson for WLFI, denied any political involvement, stating, "WLFI is not a political organization and had zero role in the pardon process. To imply otherwise is dangerous and false." Despite this, a Wall Street Journal report cited unnamed sources claiming Binance helped build the technology behind the USD1 stablecoin.
Further scrutiny arose from Binance's lobbying activities. NBC News reported that Binance hired Checkmate Government Relations, a lobbying firm run by Charles McDowell, a friend of Donald Trump Jr. The firm was paid $450,000 to lobby the White House and Treasury Department for "executive relief" and crypto-related policy work. CZ denied any connection between this lobbying and his pardon, asserting, "As far as I know, that does not exist at all." He also confirmed he has never spoken with President Trump, with their closest encounter being in an audience at Davos.
When asked about the pardon, President Trump told CBS's 60 Minutes, "I have no idea who he is," and suggested CZ was a "victim" of the previous administration.
Amid the controversy, Binance is reportedly exploring a return to tokenized stock trading, a feature it discontinued in 2021. A company spokesperson indicated this move aligns with Binance's mission to bridge traditional finance and crypto, following its recent support for tokenized real-world assets and regulated TradFi perpetual contracts.
