Binance reportedly approached the Trump family with a proposal, according to the Wall Street Journal (WSJ). Binance’s major shareholder, Zhao Changpeng, who has admitted guilt and sought a pardon from the Trump administration, is at the center of this controversy. The transaction is viewed as a potential ‘judicial dealing.’
The WSJ reported, citing anonymous sources, that Binance reached out to Trump’s associates last year with this proposal to the Trump family. This is interpreted as part of Binance’s strategy to re-enter the U.S. market after being expelled.
Binance’s management was reportedly inspired by the case of Justin Sun, a Chinese crypto entrepreneur. After facing a civil lawsuit from the U.S. Securities and Exchange Commission (SEC), Sun became the major investor in WLF by investing $30 million in November 2023. Last month, the SEC requested the court to temporarily halt the fraud lawsuit against Sun and his three enterprises. The White House did not respond to questions about Trump’s influence on the SEC’s decision.
The negotiation includes the possibility of the Trump family directly holding shares in the U.S. entity or through ‘World Liberty Financial,’ a crypto firm founded in September last year with support from the Trump family.
A source revealed that Trump’s longtime friend, Steve Witkoff, who is involved in negotiations in Ukraine and the Middle East, participated in these talks. Witkoff is also a co-founder of WLF. However, government officials denied this, stating that he is withdrawing from WLF.
Zhao’s pardon could be a strategy to bring Binance, which once held a 27% market share in the U.S., back into the U.S. market. It could also impact Binance’s entry into the European Union, where operations are prohibited if major shareholders commit crimes. The Trump family would gain the opportunity to acquire shares in Binance, once a competitor to Coinbase.
Zhao stated on social media platform X (formerly Twitter) that there were no discussions regarding Binance US but added, “There’s no reason to refuse a pardon.” He expressed a desire to advance the crypto industry in the U.S. and globally.
WLF hasn’t commented on the matter, nor have Binance and Binance US.
Trump and his family have repeatedly blurred the lines between personal gain and official duties. First Lady Melania Trump signed a $40 million documentary deal after the election victory, and President Trump gained financially through settlements with companies like Meta. The Trump family also issued a “meme coin.” Deals between the Trump family and a foreign private company with a criminal conviction could intensify this controversy.
Last month, the SEC decided to halt separate civil lawsuits against Binance and Binance US while an SEC task force develops a crypto regulatory framework.