According to a Wall Street Journal report on Thursday, which cites sources familiar with the matter, the Trump family is in discussions to acquire a stake in Binance.US, potentially increasing their engagement in the crypto sector. At the same time, Changpeng “CZ” Zhao, the founder of Binance, is actively seeking a pardon from President Trump following his imprisonment for regulatory infractions, the report added.
Since returning to the White House, President Donald Trump has been actively influencing the cryptocurrency market. In a surprising turn, the Trump family is now reportedly discussing acquiring a stake in Binance US. According to the Wall Street Journal, these talks involve buying into the American branch of the cryptocurrency exchange.
The conversation started when Binance sought connections with Trump’s allies last year, aiming to reintegrate into the US market through a business partnership with the Trumps. The family could potentially hold this stake either directly or through World Liberty Financial, their crypto venture established in September.
This deal would link the Trumps with a company that confessed to breaking anti-money laundering laws in 2023. Binance, having settled these violations by paying fines totaling $4.3 billion in 2023, views obtaining a pardon for its founder, Zhao, as essential for re-entering the US market.
Also read: MGX Makes Historic $2 Billion Investment in Binance, Marks Largest Single Investment in Crypto
Zhao, who owns the largest share of Binance and served four months in prison after a guilty plea, is now based in Abu Dhabi.
Steve Witkoff, a close Trump ally and key negotiator for Trump in the Middle East and Ukraine conflict, is reportedly part of these discussions. Nonetheless, an administration official has denied Witkoff’s participation, noting that he is currently stepping back from his business roles.
A deal involving a pardon seeker and the Trump family’s investment in Binance.US would blur the lines between Trump’s governmental and business roles, expanding their crypto ventures amid favorable executive orders.
In a positive turn, Binance also secured a substantial investment on Wednesday, with Abu Dhabi-based MGX investing $2 billion in the exchange.
After reports surfaced about Trump’s potential investment in Binance, the price of BNB surged past the critical $600 mark. However, Changpeng Zhao (CZ) later denounced these reports as false and criticized the Wall Street Journal for inaccurate journalism.
Zhao said that he has not discussed any such deals with anyone. He highlighted that over 20 individuals contacted him to debunk the WSJ’s inquiries about such a deal, suggesting the story was heavily pursued without substantial evidence.
Zhao suggested the report seems more like an attack on both the President and the crypto industry, continuing a previous administration’s anti-crypto stance.
As a result of this, BNB price strongly rejected $600 and declined heavily, dropping over 2% in the last hour. Former SEC Chair Gary Gensler once labeled Binance.US “a cauldron of fraud” and aggressively targeted the exchange with regulatory measures. Consequently, the company faced significant customer losses and had to cut 70% of its workforce after losing billions of dollars.
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