Democratic Senators call on Treasury and DOJ to investigate Trump’s connections to Binance in the crypto space.
A group of Democratic senators have asked the US Treasury and Justice Department to look into President Donald Trump’s connections to Binance, as reported on May 9.
The lawmakers put forth this request in a letter addressed to Treasury Secretary Scott Bessent and Attorney General Pam Bondi.
Details of the oversight request
The correspondence, signed by Senators Chris Van Hollen, Elizabeth Warren, Sheldon Whitehouse, and Richard Blumenthal, highlights concerns about digital assets linked to Trump and their involvement in financial dealings with Binance.
This call for investigation follows a recent announcement that MGX, based in Abu Dhabi, plans to use World Liberty Financial’s stablecoin USD1 for a significant $2 billion investment in Binance.
The senators have requested an update regarding this matter by May 21, seeking insights about federal oversight actions related to Binance’s compliance with its legal agreements.
They also inquired about Binance’s potential departure from the US market, specifics regarding a new stablecoin listing, and any discussions involving a presidential pardon for former CEO Changpeng Zhao with government officials.
Recently, Zhao confirmed that he applied for a presidential pardon after speculation regarding this action. He also met with the co-founders of World Liberty Financial in Abu Dhabi.
Involvement of Binance with USD1
USD1 was utilized to finalize MGX’s $2 billion stake in Binance back in March. MGX also financially supported Trump’s $100 billion AI infrastructure plan, which was introduced shortly after his inauguration in January.
The senators contend that these financial dealings necessitate closer examination given Binance’s prior legal issues and its relationship with the current administration.
In 2023, Binance and Zhao acknowledged violations of US money laundering and sanctions regulations. Following this, Zhao resigned from his CEO position and served a brief federal prison sentence.
Despite the company’s legal challenges, the senators expressed unease over Binance’s continued pursuit of partnerships in the US, particularly with entities connected to Trump.
The letter articulated:
“It is extremely concerning that this administration might allow Binance to carry on its operations and grow within the United States.”
It further mentioned reports indicating that representatives of the Trump family had held discussions regarding acquiring a stake in Binance.US.
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