A Strategic Alliance between Binance and the Trump Family?
Representatives of the Trump family have reportedly entered into discussions to acquire a stake in the American branch of Binance, the cryptocurrency giant. This partnership comes as Changpeng Zhao (CZ), founder of Binance and still the majority shareholder of the company, seeks a presidential pardon after serving a four-month prison sentence for money laundering violations.
According to sources close to the matter, Binance approached Trump allies in 2024 to negotiate a commercial agreement that would allow the platform to reenter the US market after its legal troubles. The stakes are high: a Trump family involvement could legitimize Binance in the United States and expedite its reintegration into the regulatory landscape.
A Deal in Exchange for a Presidential Pardon?
While the exact details of the agreement remain unclear, two main options are being considered: a direct stake from the Trump family or a partnership through World Liberty Financial, a crypto company launched in September 2024 and supported by the Trumps. Sources also mention the role of Steve Witkoff, a Trump associate now serving as a special envoy in the Middle East, who allegedly participated in the negotiations. However, an administration official denied his involvement, stating that he was divesting his business interests.
The potential conflict of interest is evident. Trump has increasingly blurred the lines between his business dealings and the presidency, financially benefiting from his electoral victory with lucrative contracts, including a $40 million documentary signed by Melania Trump. However, striking a deal with a former convict seeking a pardon would be an unprecedented situation, raising concerns about the integrity of the government process.
Binance Wants to Return to the United States
After settling a massive $4.3 billion fine with US authorities in 2023, Binance is looking to improve its image and reintegrate into the American market. The platform, which has seen its market share in the US drop from 27% to less than 1%, aims to regain its dominant position against Coinbase. However, CZ’s conviction remains a major obstacle, making it challenging to establish new partnerships and obtain a crypto license in the US and Europe.
In the face of this impasse, Binance seems to be following a scenario already seen with Justin Sun, the founder of Tron. Recently, Sun invested $30 million in World Liberty Financial while facing SEC lawsuits. A few months later, the US financial authority suspended its lawsuits against him. Binance may seek to follow the same path by injecting funds into the Trumps’ crypto company in exchange for judicial leniency.
A Geopolitical and Financial Stakes
The Binance agreement could have international ramifications. A pardon for CZ would not only facilitate Binance’s reintegration into the US market but also open doors in Europe, where companies whose shareholders have been convicted of money laundering are prohibited from obtaining a crypto license.
Trump, often referred to as the ‘crypto president,’ continues to display a favorable stance towards the industry. He has recently signed several presidential decrees in support of cryptocurrencies and hosted a crypto summit at the White House. Unlike past presidents who placed their assets under independent management, Trump allows his children to oversee his business affairs, enabling controversial deals like this one.
