The crypto landscape in Washington has done a complete 180. Once relegated to the fringes, figures like Tether's Ardoino are now getting shoutouts from the President himself. It's a far cry from the days when crypto firms were treated like financial outlaws. We're seeing a full embrace, and it's worth digging into the numbers to see what's really going on.
The most glaring example is the apparent turnaround regarding Changpeng Zhao (CZ), the former CEO of Binance. Trump, in a recent "60 Minutes" interview, claimed ignorance of Zhao, then quickly pivoted to portraying him as a victim of the Biden administration. This is despite Zhao's guilty plea and the massive settlement Binance reached with federal prosecutors. The narrative shift is jarring. Is it genuine, or is something else at play?
Binance's entanglement with World Liberty Financial (WLF), a crypto venture linked to the Trump family, adds another layer of complexity. The claim that Binance facilitated a $2 billion investment from Abu Dhabi's MGX into WLF's USD1 stablecoin is particularly interesting. Binance CEO Richard Teng denies any preferential treatment, stating that MGX chose to use USD1 for the transaction. He also notes that USD1 was already listed on other exchanges.
But here's the thing: while Teng claims Binance didn't partake in the decision, the Wall Street Journal reported that Binance assisted in building the tech behind USD1. That's a significant discrepancy (the difference between passively listing a coin and actively helping build it). It suggests a level of involvement that Teng downplays. And this is the part of the story that I find genuinely puzzling. Why the carefully worded denials if there's nothing to hide?
Senator Elizabeth Warren has been vocal about potential corruption, pointing to CZ's guilty plea, the boost to Trump's crypto venture, and the subsequent pardon. It's a direct accusation, and while accusations are cheap, the timeline is certainly suggestive. Trump turns crypto pariahs into power players
Then there's the MGX investment, which, according to a New York Times report in September, occurred just two weeks before a major agreement between the White House and the U.A.E. regarding access to American microchips. Correlation doesn't equal causation, but a $2 billion crypto deal right before a major geopolitical agreement? It raises eyebrows, to say the least. The Trump family's reported profits from WLF—ranging from hundreds of millions to billions—further fuel the fire. These numbers are not trivial.
The defense from Donald Trump Jr. and WLF CEO Zach Witkoff (son of U.S. Special Envoy to the Middle East Steve Witkoff) that their fathers aren't directly involved doesn't quite cut it. The optics are terrible, regardless of direct involvement. The whole situation feels like a house of cards built on stablecoins.
But let's step back and ask a crucial question: how reliable is the information we're getting? Much of the reporting relies on anonymous sources "familiar with the matter." While these sources can provide valuable insights, their motivations are often unclear. Are they genuinely concerned about corruption, or do they have their own agenda? We need to acknowledge the limitations of the data and the potential for bias.
