Trump Family Held Talks to Acquire Stake in Binance.US

The Trump family has discussed acquiring a stake in Binance.US, the American subsidiary of Binance, the world’s claimed largest cryptocurrency exchange.

These discussions, as detailed by The Wall Street Journal, occur against the backdrop of Binance founder Changpeng Zhao’s (CZ) pursuit of a presidential pardon following his 2023 guilty plea for violating anti-money-laundering laws.

Binance.US and Trump Held Acquisition Talks

Binance reportedly started talks last year with people close to Trump, hoping to return to the US market after facing tough rules. The possible deal might involve the Trump family investing directly, or using their new cryptocurrency business, World Liberty Financial(WLF), started last September. Whether a pardon for CZ is part of the deal is unclear. Adding to this, Steve Witkoff, a close Trump friend and important negotiator for the administration, is reportedly involved.

Binance has big legal and business problems. In 2023, the company settled with US officials for $4.3 billion, admitting to helping with illegal activities. This led to CZ stepping down as CEO and serving four months in jail, though he still owns most of the company. Binance has a new team working to fix its legal issues and get back into the US market, knowing CZ’s conviction could be a problem.

Trump’s support for cryptocurrency, shown by easing rules and orders helping digital money companies, makes things easier for Binance. But a possible Trump-Binance partnership worries people about conflicts of interest. It’s a new kind of mix between the presidency and private business. Unlike past presidents, Trump can still run his businesses through his family while in office.

Binance Emulates Justin Sun?

Binance executives reportedly studied the case of Justin Sun, a crypto entrepreneur facing SEC charges who invested $30 million in World Liberty Financial. The subsequent pause in the SEC’s case against Sun has seemingly influenced Binance’s strategy. This, coupled with Binance’s recent $2 billion investment secured from UAE-backed firm MGX, highlights the company’s proactive approach to securing its future.

A possible deal between Binance and the Trump family has big effects. For Binance, a pardon for CZ would be key to returning to the US market and growing globally. Notably, for the Trumps, a share of Binance.US would give them a piece of a fast-growing, profitable business, adding to their crypto investments.