Binance and the USD1 Create a Stir in the Crypto World: Political Connections, Price Volatility, and Legal Risks

A new wave of controversy is spreading through the cryptocurrency community after Bloomberg reported that Binance – the largest cryptocurrency exchange in the world – played a role in providing technical support and promoting USD1, the stablecoin issued by World Liberty Financial Inc. (WLFI), which is closely related to the family of former American President Donald Trump. Binance Accused of Supporting USD1: CZ Immediately Denies According to sources collected by Bloomberg, Binance has played a crucial role in building the technical platform for USD1, including the development of smart contracts and deployment mechanisms on the blockchain. Not stopping there, the exchange is also said to have supported communication and promotion for the coin right from the preparation stage for its launch in March 2025. Immediately after the report was published, Changpeng Zhao (CZ) – the former CEO of Binance – strongly rebutted. He called the article "inaccurate and misleading in nature," while accusing it of being a deliberate media act aimed at distorting the market and tarnishing Binance's reputation. CZ asserted that Binance "is not involved in the issuance or support of USD1 in any official capacity." Strong Fluctuations of WLFI token After Allegations The news immediately caused a significant upheaval in the market. The price of the WLFI token – the governance token of World Liberty Financial – skyrocketed by 90.75% within 24 hours after the report, reaching 456.94 USD, according to data from CoinMarketCap at 23:59 on July 11, 2025 ( Vietnam time ). However, when looking at the longer term, WLFI is still down 9.09% compared to 90 days prior – indicating prolonged volatility despite the short-term recovery. The daily trading volume also increased by nearly 46%, a clear sign that investors are paying special attention to this token amid the chaotic information context. However, the market dominance of WLFI remains very low, and its future depends on the results of the ongoing internal governance vote – a vote that could pave the way for WLFI to be traded widely on public exchanges. Trump And The Income of 57.4 Million USD From USD1 The situation became even more sensitive when Donald Trump – the former President of America – officially announced in his personal asset report that he had earned 57.4 million USD from business activities related to USD1, while holding 15.75 billion WLFI tokens in the form of governance rights. This raises many concerns that the combination of politics and blockchain technology could create dangerous precedents, as digital assets are used as tools for political campaigning or to influence public policy decisions. American Officials Get Involved: Binance Faces New Legal Pressure According to analysis from Coincu, Binance may face a new legal investigation due to the connection ( although not fully verified ) between this exchange and USD1 and the Trump family. In the context that Binance is still under investigation by the Department of Justice and the Commodity Futures Trading Commission of America (CFTC), this incident is likened to "the straw that broke the camel's back." Not only that, but the involvement of a major global exchange like Binance with a politically motivated stablecoin will lead lawmakers and financial regulators to tighten regulations on the crypto market in the near future. Summary: When Cryptocurrency and Politics Intersect The case of USD1 is a testament to a new high-risk trend: the intersection of decentralized finance (DeFi) and traditional politics. While stablecoins like USDT or USDC have faced scrutiny over transparency, USD1 raises deeper questions about ethics, political influence, and the potential manipulation of digital assets. If Binance is indeed involved, the implications will not be limited to WLFI or USD1, but could also undermine trust in the entire evolving DeFi ecosystem.