MASTR@MastrXYZ
⚠️ New WARNING about $WLFI and USD1
Forbes is now reporting what I already warned about in September!
Binance holds 87% of USD1
....a vehicle to funnel money.
According to a "new Forbes investigation", Binance controls roughly 4.7 billion of the 5.4 billion USD1 supply across its own wallets and user accounts.
No other top 10 stablecoin has this level of concentration on a single exchange.
This is the same Binance whose founder Changpeng Zhao pleaded guilty in 2023 for AML failures and was pardoned by Donald Trump in October and was the start venue of 10/10.
What I told you months ago:
USD1 is issued by World Liberty Financial, the Trump family crypto venture behind $WLFI.
A Trump affiliated LLC owns 38% of World Liberty Financial and receives 75% of the proceeds from $WLFI sales.
USD1 reserves are invested into US Treasurys at around 3.6% yield. The interest flows back to the owners.
In May, an Abu Dhabi state fund used 2 billion USD1 to invest into Binance. That parked 2 billion of reserves directly with the exchange that now holds 87% of the supply.
In December, Binance converted collateral from its dying BUSD into USD1, embedding the stablecoin deep into its internal structure.
Then Binance launched a promotion where USD1 holders receive 40 million in $WLFI tokens.
Two days later, 235 million WLFI tokens were transferred from World Liberty to Binance.
This level of concentration gives Binance leverage over World Liberty and creates theoretical risks like asset lockups in case of insolvency.
Former SEC advisor Corey Frayer went further and said this pattern suggests USD1 may never have been designed as a real stablecoin but as a vehicle to funnel money.
Eric Trump signed a deal in January selling 49% of World Liberty Financial for 500 million to Sheikh Tahnoon, head of MGX, the same fund that used 2 billion USD1 to invest into Binance.
2 of his associates now sit on the board.
A US congressman has opened an investigation with a March 1 deadline.
$WLFI is not backed by assets and originally was non transferable. It is a governance token sold to accredited and foreign investors.
USD1 is the stablecoin that creates the yield machine.
Binance users holding USD1 are being paid in $WLFI.
This ties exchange liquidity, stablecoin reserves, governance token distribution and political interests into one closed loop.
Forbes is just starting to unpack this.
This is exactly the structure I warned about months ago.
