Trump Family in Talks to Acquire Stake in Binance US Amid Legal Challenges

Representatives from the Trump family have reportedly been in discussions to acquire a financial stake in the U.S. division of the cryptocurrency exchange Binance. This potential investment comes at a pivotal moment as Binance's U.S. arm seeks to re-enter the American market following a guilty plea for violating anti-money laundering regulations. The talks, which began in 2024, are part of Binance's broader strategy to address its legal challenges and regain a foothold in the U.S. market.

The discussions reportedly involve World Liberty Financial (WLF), a cryptocurrency venture in which the Trump family holds a significant stake. WLF receives three-quarters of its net revenue, making it a key player in the potential deal. The involvement of Steve Witkoff, the U.S. Special Envoy to the Middle East and a co-founder of WLF, has also been noted. However, a Trump administration official denied any direct involvement, stating that Witkoff is in the process of divesting from his business interests.

Binance's co-founder and largest stakeholder, Changpeng Zhao, also known as "CZ," has allegedly been pushing for a pardon from the Trump administration as part of the deal. This move is seen as a potential legal strategy to address Zhao's conviction, which complicates Binance's efforts to secure new commercial partners in the U.S. The company has reportedly explored a similar legal route used by Justin Sun, who recently had the Securities and Exchange Commission (SEC) pause its lawsuit against him. This route involves a cash infusion into WLF in exchange for a pardon for Zhao.

CZ has denied the allegations, stating that the report got the facts wrong and that he has not discussed a Binance U.S. deal with anyone. He also noted that no felon would mind a pardon, especially being the only one in U.S. history sentenced to prison for a single BSA charge. CZ's response suggests that the report may be part of a broader attack on the President and the crypto industry, with residual forces from the previous administration still at work.

The potential investment by the Trump family in Binance's U.S. arm could have significant implications for the cryptocurrency market. It could influence compliance and market dynamics, especially amid ongoing legal challenges. The deal, if finalized, would mark a significant shift in the regulatory landscape for cryptocurrencies in the U.S., potentially paving the way for greater acceptance and integration of digital assets into the mainstream financial system.