A group of Democratic U.S. senators is requesting a federal investigation into Binance’s ties to the Trump family’s cryptocurrency venture, World Liberty Financial
Bloomberg reported that this investigation request was made in response to a $2 billion investment that prompted compliance concerns.
Senators Elizabeth Warren, Chris Van Hollen, Sheldon Whitehouse, and Richard Blumenthal requested a review of the transaction, Binance’s U.S. exit plans, and whether a pardon for former CEO Changpeng Zhao is being considered in a letter to Treasury Secretary Scott Bessent and Attorney General Pam Bondi.
The letter is in response to the recent disclosure that Abu Dhabi-based firm MXG invested in Binance using USD1, a stablecoin issued by World Liberty Financial, a company affiliated with the Trump family.
The transaction, which was disclosed on May 1, has elicited concerns regarding regulatory conflicts and potential political influence.
During a panel appearance with Eric Trump at the Token2049 conference in Dubai, Zach Witkoff, the co-founder of World Liberty, confirmed that USD1 was chosen to conclude the investment.
Binance’s turbulent history
Binance has previously acknowledged that it has violated U.S. anti-money laundering and sanctions laws. As a result, the company has agreed to a $4.3 billion settlement and has committed to withdrawing from the U.S. market.
As part of the plea agreement with the Treasury Department, the Department of Justice, and the CFTC, CZ resigned as CEO and was incarcerated in the United States for four months.
The senators cautioned that Binance’s utilization of a stablecoin affiliated with Trump “exacerbates the urgency of inquiries regarding the exchange’s compliance.”
Additionally, they referenced reports that Zhao had advocated for a potential presidential pardon and that the Trump family had discussed the acquisition of a stake in Binance. U.S.
By May 21, lawmakers are seeking updates on Binance’s compliance with its plea agreement, its departure timeline from the United States, and any correspondence with federal agencies concerning USD1 or pardons.
The letter was issued in response to the recent obstruction of a stablecoin measure by Senate Democrats, who cited the absence of provisions that would prevent President Trump and other senior officials from profiting from crypto ventures while in office. The bill’s future is uncertain, but discussions are currently underway.
