Binance founder Changpeng ‘CZ’ Zhao has recently addressed false reports linking the TRUMP digital coin to a $2 billion investment deal involving Abu Dhabi’s MGX and Binance. The rumors suggested that the TRUMP token played a role in the transaction. However, CZ has clarified the facts, set the record straight, and removed any confusion surrounding the deal.
In his latest post on X, Changpeng Zhao responded to misinformation about the $2 billion MGX investment in Binance.
Contrary to some reports, the deal was completed using the USD1 stablecoin, unrelated to the Trump digital coin. CZ emphasized that the transaction was between a private investor and the Binance Abu Dhabi-based entity. He added that the payment could come in any currency the payer chooses, such as Bitcoin, AED, USD, or USD1.
He explained that after receiving funds, it is at the discretion of the receiver to convert them to other currencies depending on market conditions.
Zhao also mentioned Binance’s reputation for having the best global liquidity, simplifying such large transactions. CZ’s statement aimed to clear the air and dispel the misleading claims linking the TRUMP memecoin to the deal.
Aside from the present media reactions, CoinGape noted earlier that the Binance founder is always making global headlines. Against some critics, he recently refuted the idea that an exchange listing impacts crypto price.
Prior to the clarification, many believed that listing on top crypto exchanges may set a token up for a big breakout.
The USD1 stablecoin used in the MGX investment is issued by World Liberty Financial (WLFI), a firm linked to the Trump family. This connection has drawn scrutiny, especially since the Trump family is reportedly considering acquiring a stake in Binance US, the American branch of the exchange.
Reports surfaced that Binance initiated talks with Trump’s allies in 2024 to strike a deal to revive Binance US. Despite this, CZ denied involvement in any such deal or discussions about seeking a presidential pardon.
The use of USD1 stablecoin in a major investment like the MGX deal has raised questions about the growing ties between World Liberty Financial and the crypto exchange. However, CZ maintains that the stablecoin is simply one of many currency options available for transactions and does not imply deeper involvement.
It is worth noting that the relationship between Binance, the Trump family, and the crypto market has attracted the attention of US lawmakers.
Earlier this year, CoinGape reported that Democratic Senators, including Elizabeth Warren and Chris Van Hollen, asked the Treasury and Justice Department to investigate the entities’ connection.
The plan was to clarify Binance’s relationship with the Trump family. This comes after Binance faced regulatory problems and suffered a penalty for anti-money laundering violations.
Unfortunately, the Trump-linked World Liberty Financial’s role in issuing the USD1 stablecoin, which was part of the MGX deal, further complicates the assertions.
U.S. Representative Nick Begich has revealed plans to reintroduce his Strategic Bitcoin Reserve bill under…
The CLARITY Act is facing a new hurdle amid a delay in the markup of…
The Ethereum Foundation has been on the investors' radar lately due to its continuing ETH…
Bitcoin treasury company Strive Asset Management (NYSE:ASST) has continued to buy BTC. Vivek Ramaswamy's Strive…
Western Union is pushing further into blockchain payments, announcing it will launch a new stablecoin,…
Ethereum treasury company Bitmine has announced another weekly Ethereum buy, bringing its holdings above 5…