Democrats Seek federal Probe into Binance and Trump Family Crypto Ties
A group of Democratic U.S. senators has demanded a federal investigation into Binance’s links with the Trump family’s crypto venture, World Liberty Financial. This move follows a $2 billion investment that raised compliance concerns, as reported by Bloomberg.
In a letter to Treasury Secretary Scott Bessent and Attorney General Pam Bondi,Senators Elizabeth Warren,Chris Van Hollen,Sheldon Whitehouse,and Richard Blumenthal requested a review of the transaction. They also want to know about Binance’s plans to exit the U.S. market and any discussions about pardoning former CEO Changpeng Zhao.
The investment was made using USD1, a stablecoin issued by World Liberty Financial. This company is tied to the Trump family. The transaction was revealed on May 1 and has raised fears of regulatory conflicts and potential political influence.
Binance has a troubled history. It admitted to violating U.S. anti-money laundering and sanctions laws, agreeing to a $4.3 billion settlement. CZ resigned as CEO and served four months in U.S. custody.
The senators warned that Binance’s use of a Trump-affiliated stablecoin raises urgent questions about its compliance. They also cited reports that Zhao had lobbied for a potential presidential pardon.
Lawmakers are requesting updates by May 21 on Binance’s adherence to its plea agreement, its timeline for leaving the U.S., and any communication with federal agencies regarding USD1 or pardons.
The letter comes as Senate Democrats recently blocked a stablecoin bill, citing the lack of provisions to bar Trump and other senior officials from profiting from crypto ventures while in office. the bill’s future remains uncertain, but discussions are ongoing.
