Trump Family in Talks to Acquire Stake in Binance After Crypto Exchange’s Legal Settlement

The Trump family has engaged in discussions to acquire a financial stake in the U.S. division of Binance, a prominent crypto exchange, according to the Wall Street Journal. This potential partnership comes after Binance admitted guilt in 2023 for breaching anti-money-laundering regulations. Simultaneously, Changpeng Zhao, Binance’s billionaire founder and largest shareholder, has been seeking a pardon from the Trump administration following his four-month prison term tied to the same charges. Known widely as CZ, Zhao completed his sentence in September 2024 and now resides in Abu Dhabi.

The negotiations trace back to last year when Binance approached Trump allies with a proposal to collaborate financially, aiming to reestablish its presence in the U.S. market after facing regulatory setbacks. Details remain uncertain about the structure of the Trump family’s potential involvement, whether it would be a direct stake or channeled through World Liberty Financial, a Trump-backed cryptocurrency initiative launched in September 2024.

Steve Witkoff, a close associate of President Trump and a key figure in his administration’s Middle East and Ukraine negotiations, has reportedly participated in these discussions. However, an administration official has refuted claims of Witkoff’s involvement, noting he is currently divesting from his business interests.

A deal with Binance, particularly one linked to a pardon for Zhao, would mark a significant convergence of public office and private enterprise, amplifying the Trump family’s growing footprint in the cryptocurrency sector amid a series of industry-friendly executive orders.

Binance, established by Zhao in 2017 in Shanghai, grew into the world’s leading crypto exchange before facing legal scrutiny. U.S. authorities accused the platform of enabling transactions with sanctioned entities, including Hamas and Islamic State, and failing to enforce compliance with anti-money-laundering laws. The company settled these allegations in 2023 with a $4.3 billion fine, prompting Zhao’s exit as CEO, though he retained his majority ownership. Recently, Binance announced a $2 billion investment from MGX, a United Arab Emirates state-backed firm, signaling its first institutional funding.

For Binance, a pardon for Zhao could pave the way for a U.S. market comeback and ease international operations. For the Trump family, a stake in Binance.US offers a chance to capitalize on the resurgence of a platform once rivaling Coinbase, bolstered by a deregulated environment under the current administration.

Binance’s Strategic Push for a U.S. Return

Binance.US experienced a sharp decline in market share following regulatory crackdowns, dropping from 27% in 2023 to just over 1% today, down from a $4.5 billion valuation the previous year. Last year, around the time of Trump’s election victory, Binance initiated efforts to reenter the U.S., proposing a deal with the Trump family and addressing its legal challenges. Under CEO Richard Teng, the company formed a working group of legal and compliance experts to explore options, recognizing Zhao’s conviction as a barrier to rebuilding partnerships.

Drawing inspiration from Justin Sun, a crypto entrepreneur who invested $30 million in World Liberty Financial amid his own SEC civil charges, Binance considered a similar strategy. Sun’s case saw the SEC pause its lawsuit against him last month, a move that fueled internal Binance debates about investing in the Trump venture in exchange for Zhao’s pardon. These discussions highlight Binance’s broader plan to overcome its legal hurdles and restore its U.S. operations, potentially merging its global and American arms into a unified entity.

The talks involving Witkoff and the Trump family have persisted since the inauguration, with World Liberty Financial drawing scrutiny for its potential to funnel foreign investments to the Trumps discreetly. Meanwhile, the SEC has paused a separate case against Binance, aligning with efforts to craft a new crypto regulatory framework. A pardon for Zhao could not only rejuvenate Binance.US but also unlock opportunities in regions like the European Union, where his conviction currently restricts licensing prospects.

Update: After this article was published, CZ responded publicly to the report denying the claims, saying the facts are wrong, saying "Fact: I have had no discussions of a Binance US deal with … well, anyone."