Binance and USD1 Token: Clarifying Richard Teng’s Position on Pardon Controversy
Understanding Binance's Position on USD1 Token
Binance's CEO Richard Teng firmly rejected the allegations suggesting a connection between the company's support for the Trump-linked USD1 stablecoin and the pardon of former CEO Changpeng Zhao (CZ). In a recent interview, Teng stated, “The decision to use USD1 for the transaction involving MGX as an investor was made by MGX; we had no part in that decision.”
The Allegations and Their Origins
The controversy began after Binance received a substantial $2 billion investment from Abu Dhabi's MGX, reportedly settled using the USD1 token. Critics, including U.S. lawmakers, suggested that Binance's listing of USD1 boosted its credibility during an influential period. Teng emphasized that Binance merely collaborates with various new projects, irrespective of political affiliations.
Political Reactions and Implications
U.S. Senator Elizabeth Warren has raised concerns over perceived corruption involving Binance and the Trump administration, reflecting a growing scrutiny of cryptocurrency operations amidst political ties. Despite these challenges, Zhao's departure from the CEO role and pardoning raises questions regarding governance within crypto enterprises.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.