Trump Family in Talks for Stake in Binance Amid Crypto Turmoil

NEW YORK, NY — Binance‘s token defied the broader downturn in the cryptocurrency market, surging 4% on Thursday following a Wall Street Journal report revealing discussions between the Trump family and the largest cryptocurrency exchange in the world regarding a financial interest in its U.S. operations.

The proposed deal is notable not only for its potential financial implications but also for linking the Trump family to Binance, which pleaded guilty to regulatory violations earlier in 2023. The Wall Street Journal stated that discussions between Binance and Trump associates began last year as the exchange seeks to stabilize its operations in the U.S. amid regulatory scrutiny.

Changpeng Zhao, commonly known as CZ, the founder of Binance, has reportedly been pursuing a presidential pardon after serving four months in prison for violating anti-money laundering laws. However, Zhao publicly denied any negotiations regarding a deal for Binance.US or an interest in seeking a pardon. “Sorry to disappoint. The WSJ article got the facts wrong,” he stated in a social media post. “I have had no discussions of a Binance US deal with… well, anyone.”

Zhao suggested that the article forms part of an ongoing attack on both the cryptocurrency industry and the current administration, claiming that remnants of the previous administration’s “war on crypto” continue to affect the sector.

A spokesperson for Binance.US declined to comment on the situation. Although the exact structure of any potential investment by the Trump family remains unclear, the Journal reported that one option under consideration involves routing the investment through a crypto venture associated with the Trumps. This venture could direct 75% of its profits to the family.

It remains uncertain whether the proposed arrangement relates directly to a possible pardon for Zhao. The revelations come as Binance endeavours to restore its credibility following a settlement of $4.3 billion related to regulatory issues. If finalized, this deal could symbolize a significant resurgence for Binance.US coinciding with the Trump administration’s moves to ease regulations affecting the cryptocurrency market.

Reports indicate that Steve Witkoff, a real estate investor and longtime associate of Trump, is serving as the principal negotiator in this endeavor, according to unnamed sources cited by the Journal.

The White House has yet to respond to inquiries from CNBC regarding the ongoing discussions.

For a deeper insight, readers can access the full Wall Street Journal article.