Representatives of Donald Trump’s family are in talks to take a financial stake in Binance US, the American unit of the world’s largest cryptocurrency exchange, according to sources familiar with the situation, The Wall Street Journal reports. Meanwhile, Binance founder Changpeng Zhao (CZ), who served a four-month prison sentence after pleading guilty to violating US anti-money laundering laws, is seeking a presidential pardon that could help Binance return to the American market.
Negotiations between the Trump family and Binance US began after the cryptocurrency exchange reached out to its insiders seeking to return to the US market following legal troubles. While the exact terms of the deal are still unknown, sources say the Trump family could take a stake directly or through World Liberty Financial, a cryptocurrency venture that launched in September.
Steve Witkoff, a real estate mogul and longtime Trump ally who is now his chief Middle East negotiator, was reportedly involved in the talks, according to sources familiar with the matter. However, an administration official denied his involvement, saying that Witkoff was currently exiting business assets.
Binance has been under intense scrutiny by US regulators over allegations it facilitated illegal transactions, including with sanctioned groups such as Hamas and the Islamic State. In 2023, the company agreed to pay $4.3 billion in fines as part of a settlement with the US Department of Justice, and Zhao was forced to step down as CEO. Despite this, he remains the company’s majority shareholder, and his criminal record makes it difficult for Binance to return to the US market.
A pardon would not only clear its reputation, but also remove legal restrictions that prevent the company from operating in a number of jurisdictions, including the European Union, where company founders with criminal records cannot obtain a cryptocurrency license.
Since taking office, Trump has been a strong advocate for crypto-friendly policies, signing executive orders that benefit the industry. If the Binance US deal goes through, it would be a significant expansion of the Trump family’s involvement in the crypto sector.
World Liberty Financial, a cryptocurrency project in which the Trump family has a significant stake, has already attracted major investors. In particular, Tron blockchain founder Justin Sun invested $30 million in November, despite allegations of fraud by the SEC. Interestingly, the SEC immediately suspended the lawsuit against Sun shortly after, which raised suspicions of possible corruption.
Binance was reportedly considering a similar option, discussing a financial deal with World Liberty Financial in exchange for a possible pardon for Zhao.
If the deal is finalized, it would be an unprecedented case of a sitting US president entering into a business deal with a company whose founder is seeking clemency.
Traditionally, US presidents place their assets in trusts to avoid conflicts of interest, but Trump has left his businesses under the control of his children, allowing the family to continue to make deals during his presidency.
The White House did not comment on Trump's possible involvement in the SEC's decision regarding Justin Sun and did not respond to inquiries about a possible pardon for Zhao.
For Binance, securing a Trump-backed partnership and pardoning Zhao could pave the way for a return to the US market and the company’s global status after years of litigation. For the Trump family, a stake in Binance US could be an opportunity to solidify its influence in the crypto market.