Donald Trump’s family is reportedly exploring a financial stake in Binance US. This development comes amid claims that Binance’s founder, Changpeng Zhao (CZ), is seeking a pardon for his 2023 guilty plea, which led to his imprisonment.
Reports indicate that Trump’s family representatives have been in talks regarding a potential investment in Binance’s US arm. The discussions began after Binance reached out to Trump’s allies last year, offering a business deal as part of its strategy to reestablish itself in the US market. The exchange had faced regulatory challenges, leading to a settlement and a shift in leadership.
In November 2023, CZ stepped down as CEO of Binance and admitted to violating US anti-money laundering laws. It was part of a $4.3 billion deal to settle a multi-year investigation of the exchange. Despite his resignation, CZ is reported to be the largest shareholder of Binance, which has potential ramifications for Trump’s family’s share of the firm.
Trump has become increasingly engaged with the crypto sector in recent months. He signed an executive order to establish a strategic crypto reserve through digital assets the government already owns.
His administration has been pro-industry, with the industry investing millions of dollars in Republican candidates during the last election. Trump’s family has also launched meme coins and has economic stakes in crypto company World Liberty Financial.
Binance US recovers amid regulatory challenges
The potential stake in Binance US has also raised issues of structure and terms. It is uncertain if the deal would depend on Trump pardoning CZ. There are reports suggesting that the investment would be made through World Liberty Financial using the family’s existing crypto connections.
Binance US has been working towards normalcy after regulatory actions suspended operations. It resumed fiat withdrawals and deposits last month as part of the efforts towards normal operations. It had been struggling since 2023 due to the SEC lawsuit against Binance for breaking securities laws, leading banks to sever ties with it.
CZ has denied he is seeking a pardon. He rejected rumors in a social media post as false and characterized them as being anti-president and anti-crypto industry. He also denied being part of any negotiations for a deal with Binance US.
