Breaking News: Trump reportedly buys stake in Binance

Source: Wall Street Journal

Trump invests in Binance

The Wall Street Journal reported thatBinance reporter Zhao Changpeng (CZ) is actively seeking pardon from the Trump administration after completing his 4-month sentence in order to re-expand Binance's US market. (Changpeng is still the largest shareholder of Binance, but is restricted from permanently participating in the company's shareholders. The regulations also have an impact on directors with felony criminal convictions))

Binance attempts to enter the US market

According to people familiar with the matter, Binance began to actively contact the Trump family last year, hoping to conclude an alliance with the Trump family and re-enter the US market.

It is not clear in what form the Trump family will hold shares in Binance US. One possible way is for the Trump family to hold shares directly, and another is through World Liberty Financial, which was established in September last year.

After being convicted, Zhao Changpeng still seeks a comeback in Binance US

Recall that Binance agreed to pay a sky-high fine of US$4.3 billion in 2023 to resolve allegations of violations by US regulators. At that time, Zhao Changpeng was forced to resign as CEO but retained a majority stake.

For Binance, if Zhao Changpeng can obtain a pardon from the Trump administration, it may improve Binance US's business development in the international market.

After Binance's US business was significantly reduced due to regulatory pressure in 2023, people familiar with the matter revealed that Binance has set up a working group led by current CEO Richard Teng to evaluate different options. Pardons may help Binance repair its US business damaged by long-term legal disputes.

People familiar with the matter also said that Binance had studied Sun Yuchen's legal strategy internally. The cryptocurrency entrepreneur became its largest investor by investing $30 million in World Liberty Financial when facing charges from the U.S. Securities and Exchange Commission (SEC). Last month, the SEC Asking the court to suspend the fraud lawsuit against Justin Sun has drawn attention to the role of the Trump administration.

Trump family and Binance transactions

People familiar with the matter pointed out that World Liberty Financial, co-founded by Trump's two sons and his friend Witkoff, may become a direct beneficiary if the transaction is conducted through the company.

A White House official refuted Tuli's claim and said that Witkoff participated in the Israeli-Pakistani ceasefire negotiations in the Middle East this week and went to Moscow on Thursday, where he might meet with Russian President Putin.

It is understood that the Trump administration is still in talks with Binance. In addition, the SEC also announced last month that it would suspend another lawsuit against Binance, which is believed to be related to the Trump administration's shift in cryptocurrency policy.

The Trump family's entry may help it turn around

Binance US once reached a valuation of US$4.5 billion in 2022, but due to regulatory issues, its market share plummeted from 27% in 2023 to 1%, resulting in a large number of senior executives leaving the company.

Binance believes that if Zhao Changpeng is pardoned, it will be able to remove regulatory barriers to its US business. The pardon will also open the door to the European Union, where companies whose shareholders have been convicted of crimes such as money laundering will be prohibited from applying for crypto regulatory licenses.

At present, World Liberty Financial, the Trump family and Binance have not responded to the transaction, but if the case continues to move forward, it will inevitably trigger greater controversy about the intersection of Trump's business and political interests.