Report: The Trump family holds talks to invest in Binance

On the 13th, The Wall Street Journal reported that the Trump family is negotiating to acquire a stake in Binance's U.S. subsidiary.

If this move comes to fruition, it would mean establishing a business relationship between Trump and a company that has admitted to violating anti-money laundering regulations. Meanwhile, Binance founder Zhao Changpeng is also actively seeking a pardon from the Trump administration.

Reports indicate that negotiations began last year, with Binance proactively reaching out to Trump's allies, hoping to return to the U.S. market through a business agreement with the Trump family. Steve Witkoff, a long-time friend of Trump, has been involved in discussions regarding the deal. He currently serves as Trump's chief negotiator on Middle Eastern and Russia-Ukraine affairs.

The specific form of the deal remains unclear, with potential options including the Trump family directly holding shares or conducting the transaction through the cryptocurrency company World Liberty Financial, supported by the Trump family.

Seeking Cooperation: Binance's Path to Return and the Trump Family's Cryptocurrency Strategy

Binance was founded by Zhao Changpeng in 2017 and quickly grew to become the world's largest cryptocurrency exchange.

However, Binance has faced scrutiny from the U.S. government due to allegations of facilitating transactions with sanctioned entities and encouraging U.S. users to evade anti-money laundering regulations. In 2023, Binance agreed to pay a total of $4.3 billion in fines to settle related charges, and Zhao Changpeng resigned as CEO of Binance but remains the largest shareholder.

According to reports citing informed sources, Steve Witkoff has been involved in discussions regarding the deal. Witkoff is a long-time friend of Trump and currently serves as Trump's chief negotiator on Middle Eastern and Russia-Ukraine affairs.

Analysts believe that for Binance, obtaining a pardon for Zhao Changpeng could pave the way for its return to the U.S. market and help expand its overseas business.

For the Trump family, acquiring a stake in Binance's U.S. division would provide them with an opportunity to participate in the recovery of the U.S. cryptocurrency trading market. With the Trump administration easing regulations on the cryptocurrency industry, Binance's U.S. division was once a competitor to Coinbase and is now seeking to revitalize its operations.

Meanwhile, Binance executives have noted the case of cryptocurrency entrepreneur Sun Yuchen, who invested in the Trump-backed cryptocurrency company World Liberty Financial last fall while facing civil charges from the U.S. Securities and Exchange Commission (SEC). Reports citing informed sources suggest that injecting capital into World Liberty Financial in exchange for a pardon for Zhao Changpeng could be a viable path.

If the deal materializes, it could trigger unprecedented conflicts of interest. The Trump family may expand its cryptocurrency business through an investment in Binance's U.S. division, while Zhao Changpeng's pardon could further solidify Binance's position in the U.S. market.

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