Representatives of former President Donald Trump's family have engaged in discussions to acquire a financial stake in Binance.US, the American arm of the world's largest cryptocurrency exchange, according to a report from The Wall Street Journal on Thursday. The potential arrangement comes as Binance founder Changpeng Zhao, known as "CZ," has sought a presidential pardon following his guilty plea to violating U.S. anti-money laundering laws.
Binance reportedly initiated discussions with Trump allies last year, presenting the possibility of a business partnership as part of its strategy to re-establish operations in the U.S. after regulatory scrutiny forced the company into retreat. The precise nature of the proposed Trump family stake remains unclear, and it is unknown whether any agreement would be contingent on a pardon for Zhao.
Zhao, who stepped down as CEO in November 2023 as part of a $4.3 billion settlement with U.S. regulators, has denied any involvement in such talks. "Sorry to disappoint. The WSJ article got the facts wrong," he posted on X. "I have had no discussions of a Binance US deal with... well, anyone." Zhao also suggested that lingering anti-crypto sentiment from the previous administration was influencing the narrative around Binance and his legal situation.
A spokesperson for Binance.US declined to comment, and representatives for Trump did not immediately respond to inquiries.
Binance's BNB token climbed 4% on Thursday following the news, outperforming a broader market decline in cryptocurrencies. The surge reflected investor optimism about the potential for improved relations between Binance and the U.S. government under Trump, who has increasingly aligned himself with the crypto industry.
Trump has recently positioned himself as a pro-crypto candidate, signing an executive order earlier this month to establish a strategic reserve of cryptocurrencies using tokens already held by the U.S. government. His administration's moves in support of digital assets have raised concerns over potential conflicts of interest, particularly given that Trump personally holds a stake in the crypto platform World Liberty Financial, which directs 75% of its profits to Trump-affiliated entities.
According to the WSJ report, one scenario under consideration involves routing the Trump family's potential Binance.US stake through World Liberty Financial. The extent to which this plan has advanced remains uncertain.
