Changpeng “CZ” Zhao, the founder of Binance, has addressed what he terms “misconstrued” business relationships with the family of former President Donald Trump, particularly in the wake of his presidential pardon. Zhao clarified that there are “no business relationships whatsoever” with the Trump family.
The former Binance CEO, who served four months in prison after pleading guilty in 2023 to charges of enabling money laundering, was released in September 2024. His pardon in October 2025 brought renewed scrutiny to Binance’s connections with World Liberty Financial, a cryptocurrency firm reportedly led by members of the Trump family.
This connection reportedly originated from a $2 billion investment made in March 2025 by MGX, a state-owned entity from Abu Dhabi, United Arab Emirates, into Binance. The transaction was settled using USD1, a stablecoin issued by World Liberty Financial. Zhao stepped down as Binance CEO in 2023 as part of his plea agreement and a $4.3 billion settlement with the Department of Justice, though he remains a significant shareholder.
Zhao emphasized that MGX was the investor and selected USD1 for the payment. He stated his preference for the payment to be in cryptocurrency, expressing a desire to avoid traditional banking channels. “Many people misconstrued that,” he commented.
Binance has since converted the investment out of USD1 over time. Zhao further explained that a stablecoin functions merely as a payment vehicle and that accepting it does not equate to investing in the issuer. Reports following the pardon indicated that Binance not only facilitated the investment via USD1 but also assisted in developing the underlying technology for the stablecoin, according to individuals familiar with the matter.
When questioned about the pardon, Trump stated, “A lot of people say that he wasn’t guilty of anything. And so I gave him a pardon at the request of a lot of very good people.”
Around the time of Trump’s pardon, it was reported that Binance had engaged the services of Checkmate Government Relations, a lobbying firm led by Charles McDowell, an acquaintance of Donald Trump Jr. The firm disclosed receiving $450,000 for lobbying efforts that included seeking “executive relief” and addressing “financial services policy issues relating to digital assets and cryptocurrency” with the White House and the Treasury Department.
Zhao expressed to CNBC at the World Economic Forum in Davos that he was unaware of any such arrangement for a pardon, stating, “As far as I know, that does not exist at all.”
Zhao also mentioned that he has not had direct communication with former President Trump, with his closest proximity being observing Trump from a distance during a “Board of Peace” session in Davos. In a prior interview, Trump asserted that he did not know Zhao, stating, “I have no idea who he is. I was told that he was a victim, just like I was and just like many other people, of a vicious, horrible group of people in the Biden administration.”
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