Yes: the MGX Binance USD1 deal happened as described. On May 1, 2025, a World Liberty Financial co-founder announced that Abu Dhabi’s MGX would close its $2 billion investment in the Binance crypto exchange using USD1, the stablecoin of the Trump family’s crypto venture. What the record does not show is that the $2 billion went to the Trumps, that it bought Changpeng Zhao’s pardon, or that it won the United Arab Emirates its chip approvals. Those are claims by critics, and the people involved deny them.
Where it stands: As recently as Oct. 14, 2026, CBS News reported that “Both Binance and Mr. Trump denied the pardon for Zhao, the Binance co-founder, was connected to the transaction.” As of Oct. 26, no finding or charge by any U.S. authority over the deal had been reported.
Here is what the parties say. Binance CEO Richard Teng told CNBC that MGX picked the stablecoin: “First of all, the usage of USD1 [for the] transaction between MGX as a strategic investor into Binance, that was decided by MGX … We didn’t partake in that decision.” He added, “Sometimes it works out. Sometimes it doesn’t. In the case of USD1, I’m glad that both parties worked it out.” World Liberty CEO Zach Witkoff, son of envoy Steve Witkoff, appeared on CNBC with co-founder Donald Trump Jr. and said their fathers “were not focused on nor directly involved in the business.” Trump, asked about Zhao days after the pardon, told CBS News, “I don’t know who he is.” When the deal was announced, Reuters reported that the White House and World Liberty “did not respond immediately to requests for comment.”
The MGX Binance USD1 deal, claim by claim
| What is being said | Rating | Basis |
|---|---|---|
| Abu Dhabi fund settled a $2B Binance deal in the Trump family stablecoin (tracker headline) | Accurate as reported | Announced May 1, 2025; reported by Reuters, AP, CNBC |
| MGX is a UAE state vehicle | Accurate as reported | CNBC: state-owned; chaired by Sheikh Tahnoon |
| The $2 billion went to the Trump family | Not supported by the record | The money bought a stake in Binance |
| The Trumps made hundreds of millions from it | Not supported by the record | Senators’ estimate; no disclosed figure |
| Binance steered the deal to USD1 | Disputed | WSJ says Binance helped; Teng says MGX chose |
| The deal bought Zhao’s pardon | Disputed | Alleged by lawmakers; denied; no finding |
| MGX’s purchase bought the UAE easier access to U.S. chips | Not supported by the record | CNBC found nothing showing it swayed Commerce |
This entry is one of the foreign-money items on our Trump corruption tracker. The reasoning for each verdict follows.
What happened on May 1, 2025
The announcement came on stage at a crypto conference in Dubai. “We are excited to announce today that USD1 has been selected as the official stablecoin to close MGX’s $2 billion investment in Binance,” Zach Witkoff said, according to Reuters. Senators Elizabeth Warren and Jeff Merkley later wrote that “On May 1, WLF announced that MGX would use USD1 to fund a $2 billion investment in Binance.”
MGX is not a private fund. CNBC described it as “Abu Dhabi’s state-owned investment firm MGX,” and reported in August 2026 that it is chaired by the UAE’s national security adviser, Sheikh Tahnoon bin Zayed Al Nahyan. The headline claim is therefore accurate: a foreign government-backed investor moved $2 billion through a dollar token issued by a company tied to the sitting president’s family.
Reuters added a detail that is still unresolved. “An anonymous cryptocurrency wallet that holds $2 billion worth of USD1 received the funds between April 16 and 29, according to data from crypto research firm Arkham,” it reported, adding: “Reuters could not ascertain the owner of this wallet.”
Where did the $2 billion go?
To Binance, as an investment. The figure is the size of MGX’s stake purchase, not a payment to World Liberty or to Trump. Posts saying the UAE handed the Trumps the full sum misread the deal.
The family’s possible gain is narrower and harder to measure. A stablecoin is a crypto token pegged one-to-one to the U.S. dollar and backed by reserves. Reuters explained how issuers make money: “Their issuers typically profit by earning interest from the Treasuries and other assets that underpin them.” Holding $2 billion in USD1, even briefly, meant more reserves behind the coin.
How much of that reaches the Trumps is not public. Warren and Merkley wrote that “a Trump-affiliated entity controls 60% of WLF’s ownership and has a claim to 75% of revenues from its crypto token,” and argued the deal was “effectively cutting the Trump and Witkoff families into the deal to the tune of hundreds of millions of dollars.” That is the senators’ estimate, not a figure in any disclosure. Trump’s own filing, AP reported, showed “more than $57 million” from World Liberty in the prior year, but it does not break out this transaction. World Liberty’s site also says Trump and his family are not an “officer, director, founder, or employee of, or manager, owner or operator of World Liberty Financial or its affiliates.”
Did Binance steer the deal to USD1?
The accounts conflict. CNBC, citing the Wall Street Journal, reported that “Binance not only facilitated the settlement of MGX’s investment using USD1, but also assisted in building the technology behind the stablecoin, citing anonymous sources familiar with the matter.” Reuters reported at the time that “USD1 is issued on Binance’s blockchain.”
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Teng’s answer is that the choice belonged to the buyer, MGX, and that “USD1 had already been listed on other exchanges before Binance.” MGX’s own reasons for choosing USD1 have not been reported in the sources reviewed here. The two versions can’t be reconciled from the public record, so the rating is disputed.
The pardon and chip claims
Five months after the deal, Trump pardoned Binance founder Changpeng Zhao. CNBC wrote that the investment and Binance’s USD1 listing led “some lawmakers and reports suggesting this may have influenced the pardon of Zhao.” Trump and Binance deny any connection. No investigation of that link had been reported as of Oct. 26. The pardon itself, Zhao’s guilty plea and the Democratic reports about it are covered in our Changpeng Zhao pardon fact check.
The chip claim rests on timing. CNBC reported that, according to the New York Times, MGX’s purchase “occurred two weeks before the White House signed a major agreement with the U.A.E. on access to hundreds of thousands of American microchips.” In July 2026, Commerce said it would “favorably review” license requests for chips and servers bound for MGX. Warren wrote to Commerce Secretary Howard Lutnick on Aug. 5 that “The Department’s actions raise significant questions about the potential influence the President’s cryptocurrency business interests may be having on the agency’s operations and our national security.”
The department’s stated reason is different: “Commerce has said the change recognizes the UAE’s status as a major U.S. defense partner.” CNBC reported that “There is no evidence that those transactions influenced Commerce’s export controls decision,” and that Commerce and the White House did not immediately respond to Warren’s letter. A separate $500 million UAE-linked stake in World Liberty is checked in our fact check of the World Liberty UAE stake.
Frequently Asked Questions
What is the MGX Binance USD1 deal?
MGX, an Abu Dhabi state-owned investment firm, bought a $2 billion stake in the crypto exchange Binance and completed the payment in USD1, a dollar-pegged stablecoin issued by World Liberty Financial, the crypto company tied to the Trump family. World Liberty announced the arrangement on May 1, 2025.
Did the Trump family receive $2 billion from the UAE?
No. The $2 billion was MGX’s investment in Binance. World Liberty could benefit from the reserves behind USD1, but no public disclosure shows how much the Trump family earned from this transaction.
Who chose to use USD1 for the MGX investment?
Binance CEO Richard Teng says MGX made that decision and Binance did not take part. The Wall Street Journal, as reported by CNBC, said Binance helped settle the deal in USD1 and helped build the stablecoin’s technology.
Is the MGX deal linked to the Changpeng Zhao pardon?
Some lawmakers have suggested it may have influenced the October 2025 pardon. Trump and Binance deny any connection, and as of Oct. 26, 2026, nobody in government had announced any finding on the question.
Sources
- Trump’s stablecoin chosen for $2 billion Abu Dhabi investment in Binance, co-founder says — Reuters via Fox Business, May 1, 2025
- Warren, Merkley Seek World Liberty Financial Records on $2 Billion Trump Stablecoin Deal Involving UAE Firm and Binance — Office of Sen. Jeff Merkley, May 2025
- Trump pardons Binance founder Changpeng Zhao — The Associated Press via PBS NewsHour, October 23, 2025
- Binance CEO denies firm aided Trump-linked crypto project before CZ pardon — CNBC, November 4, 2025
- Elizabeth Warren probes UAE tech access after Trump crypto investments — CNBC, August 5, 2026
- Trump meme coin buyers vie for dinner with the president. Many appear to be overseas. — CBS News, October 14, 2026
This article is news reporting and analysis based on the public sources listed above, as they stood on the dates shown. Where officials, lawmakers or analysts disagree, including on whether an action is lawful, their positions are attributed to them; Donald Trump Class Action is not a court and nothing here is legal advice. Facts in a developing story can change.