Crypto Titans Deny Collusion Claims Over Trump-Linked DeFi Platform As Binance Founder Slams 'Smear Campaign'

Key players from the crypto sector, namely World Liberty Financial and Binance, are pushing back against allegations suggesting they jointly promoted a decentralized finance project associated with Donald Trump.

The controversy erupted following a Wall Street Journal article that implied Binance founder Changpeng Zhao had supported foreign outreach for the DeFi platform, according to The Block reporting published on Friday.

Zak Folkman, a co-founder of World Liberty Financial (WLFI), posted a firm rebuttal on social media on Friday, dismissing claims that Zhao, widely known as “CZ,” acted as a behind-the-scenes facilitator for WLFI or its fellow co-founder, Zach Witkoff.

Folkman called the idea “laughable” and categorically untrue.

The Wall Street Journal had hinted at potential connections between Zhao and WLFI's efforts to establish a presence in countries such as Pakistan, Abu Dhabi and Kyrgyzstan.

However, the report offered few specifics about the nature or outcome of those alleged introductions.

The article noted that Witkoff and Zhao are reportedly friends but stated, via WLFI's spokesperson, that Zhao had no formal involvement in WLFI's outreach.

Binance responded similarly, describing Zhao as a figure promoting crypto innovation worldwide, and expressing that the company would welcome any role that helps position the United States as a global crypto hub.

In his own posts on X, Zhao not only denied the claims but also suggested a broader effort to undermine Binance.

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He alluded to unnamed venture capital backers of U.S.-based crypto exchanges potentially funding negative press campaigns to sideline Binance's influence.

"Rumor has it that a major VC… is lobbying hard against ‘Binance helping U.S. to become the capital of crypto,'" Zhao wrote. "Millions paid in lobbying efforts. Fear of competition."

Both Binance and WLFI have been under regulatory scrutiny in recent months, particularly in light of past legal issues involving Zhao.

In 2023, Zhao pleaded guilty to violations of anti-money laundering laws and paid a $50 million fine. Binance agreed to a staggering $4.3 billion settlement in the same case.

Zhao served four months in prison and has since resumed public activity, recently confirming he applied for a presidential pardon from Trump.

WLFI, which positions itself as aligned with Trump and has referred to him as its "chief crypto advocate," recently debuted a stablecoin named USD1.

The token is pegged to the U.S. dollar and was used this month by Abu Dhabi's MGX investment firm in a $2 billion transaction involving Binance.

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