Connecticut Senator Chris Murphy has alleged that Binance played a role in what he described as a “corrupt arrangement” linked to President Donald Trump’s decision to pardon the exchange’s founder, Changpeng “CZ” Zhao.
In a series of posts on X (formerly Twitter), Murphy claimed that Binance had “launched Trump’s corrupt crypto coin” and assisted in a wider “UAE trade-for-cash” scheme that allegedly benefited the former president.
“You basically did whatever crooked thing Trump asked. And then, voila — your billionaire owner gets a pardon,” Murphy wrote, addressing the exchange directly.
The senator’s remarks follow confirmation last week from the White House that Trump granted a presidential pardon to Zhao, who completed a four-month federal sentence in 2024 after pleading guilty to violating U.S. anti–money-laundering regulations.
The decision, presented by the administration as an effort to end the prior administration’s “war on crypto,” has since ignited a political backlash across Washington.
Murphy intensified his criticism after Binance US revealed on Tuesday that it would list USD1, a stablecoin created by Trump’s World Liberty Financial project.
“One week after Trump pardons Binance’s owner… Binance starts promoting Trump’s crypto,” Murphy wrote, calling the move a sign of ongoing corruption within the White House.
In response, Binance US denied any wrongdoing, saying that every asset listed on the platform undergoes “comprehensive due diligence.”
The company added that USD1 already trades on more than 20 global exchanges and accused the senator of politicizing routine exchange operations.
The controversy has drawn broader attention to Binance’s growing business links with Trump-aligned ventures.
Public filings show a $2 billion investment by MGX into USD1, which reportedly generates between $60 million and $80 million annually for Trump’s crypto firm World Liberty Financial, and around $1 billion in profits for the Trump family.
Democratic lawmakers have called for investigations and new legislative safeguards.
Representative Maxine Waters called the pardon “appalling but unsurprising,” while Ro Khanna proposed a bill prohibiting public officials from owning or issuing cryptocurrencies.
Meanwhile, Senators Elizabeth Warren and Adam Schiff introduced a resolution condemning the pardon, arguing that Trump’s decision followed “months of deepening financial entanglements” with Zhao and urging Congress to act against “influence-peddling and corruption.”
The accusations have thrust Binance, Trump, and the broader crypto-political nexus into renewed scrutiny as the former president prepares for another election campaign.
