Trump family in talks for Binance stake amid push for CZ pardon: WSJ

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

Editor’s note: This article has been updated to include a statement from Zhao.

These negotiations come as Binance founder Changpeng Zhao, known as CZ, seeks a presidential pardon following his guilty plea in 2023 for violating anti-money-laundering laws, according to The Wall Street Journal.

The talks reportedly began after Binance reached out to Trump’s allies last year, looking to reestablish a presence in the U.S. market. 

The potential deal could involve the Trump family directly or be conducted through World Liberty Financial, a Trump-backed cryptocurrency venture launched in September. However, it remains unclear whether the stake would be contingent on a pardon for Zhao.

Steve Witkoff, a close Trump associate and the administration’s top negotiator for the Middle East and Ukraine conflicts, has played a role in these discussions, sources say told WSJ.

Binance’s legal and business challenges

Binance has faced intense regulatory scrutiny in the U.S., culminating in a $4.3 billion settlement with authorities in 2023 over alleged facilitation of illicit transactions. 

As part of the agreement, Zhao stepped down as CEO and served four months in prison but remains Binance’s majority shareholder.

In recent months, Binance has been positioning itself for a return to the U.S. market. The exchange set up an internal working group under CEO Richard Teng to explore legal pathways, acknowledging that Zhao’s criminal conviction could hinder its reintegration.

Trump’s pro-crypto stance has added momentum to Binance’s efforts. His administration has been rolling back regulatory restrictions on the industry, signing executive orders that benefit digital asset firms. 

The potential Trump-Binance deal raises concerns about conflicts of interest, as it would mark an unprecedented overlap between the presidency and private business dealings. Unlike past presidents, Trump has maintained control over his assets through his family, allowing them to pursue business ventures while he remains in office.

Separately, Binance executives have reportedly studied the case of Justin Sun, a crypto entrepreneur facing SEC charges, who invested $30 million in Trump’s World Liberty Financial last year. 

Following Sun’s investment, the SEC paused its fraud case against him, leading Binance to consider a similar strategy, sources told the WSJ.

The exchange recently secured a $2 billion investment from UAE-backed firm MGX.

CZ refutes report, denies any discussions of a pardon deal

After the article was published, Zhao denied the report and the notion that he sought a pardon from U.S. authorities. In a post on X, CZ said the article “got the facts wrong” and claimed he never had discussions about a deal for clemency.

“More than 20 people told me they were asked by the WSJ if I made some deal for a pardon,” CZ wrote. “I have had no discussions of a Binance US deal with … well, anyone.”

CZ suggested the report was politically motivated. He argued that the story was part of an ongoing “war on crypto” and an attack on the U.S. President.