The family of Trump is in talks to acquire an interest in Binance.US, the American affiliate of Binance, which is the largest cryptocurrency exchange in the world.
These discussions arise as Binance founder Changpeng Zhao, often referred to as CZ, seeks a presidential pardon after pleading guilty in 2023 to breaching anti-money-laundering regulations, according to reports.
The negotiations reportedly began when Binance reached out to allies of Trump last year, aiming to reestablish its foothold in the U.S. market.
The potential agreement might involve the Trump family directly, or it could be facilitated through World Liberty Financial, a cryptocurrency initiative supported by Trump that was launched in September. However, it is still uncertain whether the investment would hinge on a pardon for Zhao.
Sources indicate that Steve Witkoff, a close associate of Trump and a key negotiator for Middle Eastern and Ukrainian issues during his administration, has been involved in these discussions.
Legal and Business Obstacles Facing Binance
Binance has been under significant regulatory scrutiny in the United States, culminating in a $4.3 billion settlement with authorities in 2023 over allegations of facilitating illicit transactions.
As part of this settlement, Zhao resigned as CEO and served four months in prison, yet remains the majority owner of Binance.
Recently, Binance has been maneuvering to return to the U.S. market. The exchange has established an internal working group under CEO Richard Teng to explore legal routes, recognizing that Zhao’s criminal conviction may pose challenges to its reentry.
Trump’s favorable stance towards cryptocurrency has fueled Binance’s ambitions. His administration has been undoing regulatory constraints on the sector, issuing executive orders that favor digital asset companies.
The potential deal between Trump and Binance raises alarm over possible conflicts of interest, representing an unprecedented intersection of presidential duties and private business engagements. Unlike previous presidents, Trump has retained control of his assets through his family, enabling them to pursue business opportunities while he holds office.
Additionally, Binance executives have reportedly examined the case of Justin Sun, a crypto entrepreneur under SEC scrutiny who invested $30 million in Trump’s World Liberty Financial last year.
After Sun’s investment, the SEC paused its fraud case against him, prompting Binance to contemplate a similar approach, according to sources.
The exchange has also recently secured a $2 billion investment from MGX, a UAE-backed firm.