Pardon, Investment, and Politics: Trump and Binance’s Curious Courtship
As Binance seeks renewed U.S. foothold following its $4.3 billion settlement and leadership shake-up, the Trump family is exploring a potential investment in the American arm of the embattled crypto exchange.
Trump Family Eyes Binance.US
The Wall Street Journal has reported that members of former President Donald Trump’s family have engaged in discussions to acquire a financial interest in Binance.US, the American affiliate of the world’s largest cryptocurrency exchange. The move comes as Binance attempts to rebuild its position in the U.S. market after significant regulatory and legal setbacks in 2023.
According to sources cited by The Wall Street Journal, the nature of the Trump family’s prospective stake remains undefined. It could involve a direct investment or a tie-in through World Liberty Financial, a Trump-backed decentralized finance venture launched in September 2024.
Context: Binance’s Legal Troubles and Strategic Pivot
The talks follow Binance founder Changpeng Zhao’s guilty plea to anti-money-laundering violations in 2023, which led to a $4.3 billion settlement with U.S. authorities. Zhao, who remains the majority shareholder, was sentenced to four months in prison. Despite stepping down as CEO, he continues to be a central figure in the exchange’s strategic decisions.
In a since-deleted December 2 post on X, Zhao said he “wouldn’t mind a pardon” from Trump, though he emphasized he had no plans to return as CEO. Sources suggest Zhao and Binance initiated conversations with Trump allies last year as part of a broader strategy to reestablish Binance’s U.S. footprint.
Binance.US Market Share Declines Sharply
Binance.US, once a key player in the American crypto space, has seen its market share plummet from 27% to just over 1% following the 2023 enforcement actions. Regulatory scrutiny intensified after U.S. authorities alleged the platform facilitated transactions involving sanctioned groups like Hamas and Islamic State, and encouraged users to evade compliance protocols. The legal fallout prompted the departure of senior staff and eroded investor confidence.
Amid these challenges, Binance’s U.S. entity is reportedly considering structural changes to regain traction. A recent minority stake acquisition by UAE-based MGX is seen as part of ongoing efforts to stabilize operations.
Trump Allies and Ongoing Negotiations
According to the Wall Street Journal report, Steve Witkoff, a longtime Trump associate and former adviser on the Middle East and Ukraine affairs, is leading the negotiations with Binance on behalf of the Trump family. However, statements from the Trump camp have claimed that Witkoff is currently disengaging from his business interests.
Despite public denials, discussions between the two sides are ongoing. Binance, now led by CEO Richard Teng, has formed an internal task force to explore reentry strategies, including potential partnerships that could facilitate market expansion and regulatory compliance.
Political Overlaps
The SEC recently paused its civil case against Binance, echoing similar action in its suit against Tron founder Justin Sun, who notably invested $30 million in World Liberty Financial. This has led to conjecture about a possible “pardon-for-investment” strategy.
Trump’s continued business engagements during his political tenure have drawn scrutiny. Unlike predecessors who opted for blind trusts, Trump delegates asset management to his children, skirting traditional conflict-of-interest safeguards but remaining bound by constitutional limits on foreign income.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
