U.S. Senators demand Binance-Trump investigation after $2b deal

A group of Democratic U.S. senators is calling for a federal investigation into Binance’s connections with the Trump family’s cryptocurrency venture, World Liberty Financial.

This investigation request following a $2 billion investment that raised compliance concerns, according to Bloomberg reporting.

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, Binance’s U.S. exit plans, and whether a pardon for former CEO Changpeng Zhao is under consideration.

The letter follows revelations that Abu Dhabi-based firm MXG used USD1—a stablecoin issued by World Liberty Financial, a company tied to the Trump family—to invest in Binance. 

The transaction, made public on May 1, has sparked fears of regulatory conflicts and potential political influence.

World Liberty co-founder Zach Witkoff confirmed that USD1 was selected to close the investment during a panel appearance with Eric Trump at the Token2049 conference in Dubai.

Binance’s rocky past 

Binance previously admitted to violating U.S. anti-money laundering and sanctions laws, agreeing to a $4.3 billion settlement and pledging to withdraw from the U.S. market. CZ resigned as CEO and served four months in U.S. custody as part of the plea deal reached with the Treasury Department, the Department of Justice, and the CFTC.

The senators warned that Binance’s use of a Trump-affiliated stablecoin “raises even more urgent questions” about the exchange’s compliance. They also cited reports that Zhao had lobbied for a potential presidential pardon and that the Trump family discussed acquiring a stake in Binance.US.

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.