Binance founder and former CEO Changpeng Zhao (CZ) has addressed the increased scrutiny over his connection to former President Donald Trump, stating that their relationship has been widely misunderstood since Trump granted him a pardon in October 2025.
The pardon drew criticism from Democratic lawmakers and raised questions about Binance’s alleged political ties. In a recent CNBC interview, Zhao rejected claims of a business relationship with the Trump family. “There’s no business relationship whatsoever,” he said, adding that the narrative had been “misconstrued.”
Much of the attention has focused on Binance’s link to World Liberty Financial (WLFI), a DeFi venture associated with Trump. This connection stems from a $2 billion investment in Binance made in March 2025 by MGX, an Abu Dhabi state-owned firm, which used WLFI’s USD1 stablecoin for the transaction.
Zhao emphasized that the payment method was chosen by the investor, not Binance. “MGX is the investor. They choose USD1,” he explained. “My request to them was they pay us in crypto. I don’t want to deal with banks, really.” He said the use of USD1 has been wrongly interpreted as evidence of a deeper alliance.
WLFI also pushed back on the claims. Spokesperson David Wachsman stated, “As we have stated many times, WLFI is not a political organization and had zero role in the pardon process. To imply otherwise is dangerous and false.”
Trump himself downplayed any connection in a November interview, saying, “I have no idea who he is,” and describing Zhao as a victim of the Biden administration.
Additional scrutiny has fallen on Binance’s lobbying in Washington. Reports revealed that Binance hired Checkmate Government Relations, a firm led by Charles McDowell, a friend of Donald Trump Jr., paying $450,000 to lobby the White House and Treasury on issues including “executive relief.”
Zhao denied any link between lobbying efforts and his pardon. “There is a lot of media saying that there is some deal in place to get me the pardon,” he said. “As far as I know, that does not exist at all.” He also stated he has never spoken directly with Trump, noting the closest he got was being in an audience about 30 to 40 feet away from him.
At the time of writing, Binance Coin (BNB) was trading at $893, down 4% over the past week but still up 30% year-to-date.
Frequently Asked Questions
Of course Here is a list of FAQs about Binance Founder CZs statement on the Trumprelated controversy designed to be clear and helpful for a range of readers
Beginner General Questions
1 Who is CZ and what is this controversy about
Answer CZ is the founder of the major cryptocurrency exchange Binance The controversy involves reports that he was asked by someone in Donald Trumps 2020 campaign to step down as CEO in exchange for a settlement with the US government
2 What did CZ actually say in his statement
Answer CZ stated that he was never asked to step down by anyone from the Trump campaign He called the reports categorically false and emphasized that his legal decisions were based on what was best for his company and the crypto community not political pressure
3 Why does this matter to regular crypto users
Answer It matters because the legal and political pressures on major exchange founders can impact the stability regulations and public trust in the entire cryptocurrency market which affects everyone holding or trading crypto
4 Is Binance in trouble because of this
Answer Binance has already settled its major case with US authorities This statement is about refuting a specific political allegation not about new legal trouble for the company itself
Intermediate Contextual Questions
5 What was the original settlement CZ and Binance had with the US
Answer In November 2023 Binance and CZ settled with the US Department of Justice and other agencies Binance agreed to pay over 4 billion and CZ pleaded guilty to charges related to antimoney laundering violations and stepped down as CEO He is awaiting sentencing
6 What would be the motive for someone to ask CZ to step down for political reasons
Answer The alleged motive as reported was to prevent a market crash or negative news that could hurt Trumps reelection chances in 2020 A major exchange founder being charged during a campaign could be seen as politically damaging
7 How has the crypto community reacted to CZs statement