[WASHINGTON] Representatives of President Donald Trump’s family have held discussions to acquire a financial stake in the US arm of cryptocurrency exchange Binance, while the company’s founder seeks a presidential pardon, according to a Wall Street Journal report on Thursday (Mar 13).
Binance founder Changpeng Zhao, who served four months in prison after pleading guilty to violating anti-money-laundering requirements, has been pushing for clemency from the Trump administration.
Zhao, known as CZ, remains Binance’s largest shareholder despite stepping down as CEO following the company’s US$4.3 billion settlement with US authorities in 2023.
According to the Journal, the talks reportedly began when Binance approached Trump allies last year, offering a business deal with the family as part of a strategy to re-enter the US market.
The potential investment could be made directly by the Trump family or through World Liberty Financial, a cryptocurrency venture backed by the Trumps that launched in September.
Steve Witkoff, a longtime Trump friend who serves as his top negotiator in the Middle East and Ukraine, has reportedly been involved in the negotiations, though an administration official denied this to the Journal.
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For Binance, a pardon for Zhao would clear regulatory hurdles for the company’s return to the US market and ease international business operations.
The company’s US arm saw its market share plummet from 27 per cent to just over one per cent following regulatory actions.
For the Trump family, a stake in Binance in the US would provide an opportunity to participate in the potential revival of a major crypto trading platform at a time when the administration is rolling back regulatory restrictions on the industry.
The discussions, if confirmed, also raise unprecedented conflict of interest questions as Trump continues to mix his presidential powers and business interests.
Unlike previous presidents who placed assets in blind trusts, Trump has kept his holdings under family control while they continue pursuing business deals.
The news came as United Arab Emirates-based fund MGX, headed by the brother of the UAE’s president, on Thursday announced it has invested US$2 billion to take a minority stake in Binance.
State-backed MGX is also involved in Stargate, the US’ major artificial intelligence infrastructure project, that has been championed by Trump. AFP
