Good day everyone,
I hope you are all having a good day, welcome to CryptoGod-1's blog on all things crypto. In this post I will be looking at how Binance helped develop code for the Trmp-backed stablecoin USD1 before the presidential pardon request for Binance founder Changpeng Zhao.
Binance Wrote Code for Trump-Backed USD1 Stablecoin
It has emerged that Binance wrote a smart contract code for the stablecoin USD1. The stablecoin was launched by the Trump family’s World Liberty Financial Inc. and Binance were involved with playing a critical role in its development. This enabled the coin’s creation and use in a $2 billion transaction last spring. It was also revealed that this assistance happened even though Binance founder Changpeng Zhao had pleaded guilty for failing to maintain an effective anti-money-laundering program and his subsequent public request for a presidential pardon.
The USD1 stablecoin is pegged to the U.S. dollar and back by cash, Treasury bills, and repurchase agreements. This was a major part of its design and instrumental in the high-profile deal with UAE based investment firm MGX to purchase a stake in Binance. It was revealed by blockchain data that over 90% of USD1’s tokens, more than $2 billion, remain in Binance’s wallets. This has led to huge interest potentially worth tens of millions annually for the Trump family.
Not only did Binance help in code development, they also actively promoted USD1 to its 275 million users. While neither Binance nor World Liberty have given any confirmation that payments were made in exchange for Binance's support, it seems likely. A Binance spokesperson declined to comment on the coding assistance or the investment deal. They did however not that USD1 went through Binance’s standard listing process. It was also noted that Zhao is no longer CEO of Binance and his pardon was a totally seperate and personal matter away from the dealings of the exchange.
Legal experts have noted that the unprecedented nature of a sitting president’s personal financial interests intersecting with official duties are highlighting the issue in this matter. Given that Trump’s family-backed crypto ventures have rapidly added hundreds of millions to their fortune as regulatory enforcement against crypto firms eased during his administration, many feel the blurred line being governance and investment is being breached.
It has been reported that collaboration between Binance and World Liberty reportedly began after Zhao met with Steve Witkoff. He is a Trump appointee and co-founder of World Liberty. The meeting happened shortly after the election victory and despite denial of this meeting it is clear the relationship has grown.
https://twitter.com/cz_binance/status/1900194883891322948
Have a great day.
Peace. CryptoGod-1.
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