| Key Points: – Representatives of Donald Trump’s family have discussed acquiring a stake in Binance.US exchange, potentially through their crypto venture, World Liberty Financial. – Binance and its founder, Changpeng Zhao, faced U.S. legal actions, leading to a $4.3 billion settlement and a decline in Binance.US’s market share. |
Representatives of former President Donald Trump’s family have engaged in discussions to acquire a financial stake in Binance.US exchange, the American arm of the global cryptocurrency exchange, according to sources cited by The Wall Street Journal.
The negotiations, which began after Binance reached out to Trump allies last year, could mark a significant reentry of the firm into the U.S. market.
Trump Family in Talks for Binance.US Exchange Stake
The potential deal comes amid ongoing legal and regulatory challenges for Binance and its founder, Changpeng Zhao. In 2023, Binance pleaded guilty to violating U.S. anti-money-laundering regulations and agreed to pay $4.3 billion in fines.
Zhao, widely known as CZ, stepped down as CEO and served four months in prison before relocating to Abu Dhabi. Despite his resignation, he remains the company’s largest shareholder.
Sources familiar with the discussions indicate that Zhao has been seeking a presidential pardon from Trump, before he returned to the White House.
It remains unclear whether the Trump family’s potential stake in Binance.US exchange would be contingent on such a pardon. One possibility that could have happened is routing the investment through World Liberty Financial, a cryptocurrency venture launched by Trump’s associates in September.
Trump’s longtime associate, Steve Witkoff, has reportedly played a role in the negotiations. However, a U.S. administration official has denied his involvement, stating that Witkoff is currently in the process of divesting from his business interests. Following this news, the price of BNB increased by more than 5.8% with volume surging by more than 40%.
Binance has faced significant scrutiny from U.S. regulators. The Securities and Exchange Commission (SEC) has accused the exchange of inflating trading volumes, mismanaging customer funds, and failing to implement adequate market surveillance controls. In response, Binance.US has contested the allegations, labeling the SEC’s legal actions as overly aggressive.
Crypto Giant Eyes U.S. Comeback Amid Policy Shifts
Despite past regulatory challenges, Binance is actively seeking a return to the U.S. market. The company’s American arm, once valued at $4.5 billion, has seen its market share decline sharply from 27% to just over 1%.
Binance.US exchange recently resumed U.S. dollar deposits and withdrawals, signaling efforts to rebuild its presence. Additionally, in a move that may bolster its global operations, state-backed investor MGX from the United Arab Emirates acquired a $2 billion minority stake in Binance.
With a new administration seen as more favorable to cryptocurrency, Binance’s efforts to reestablish itself in the U.S. could gain momentum. A stake in Binance.US would provide the Trump family with a strategic entry into the crypto sector, coinciding with broader industry optimism about regulatory changes under Trump’s leadership.
| DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing. |
Other Posts
Latest
California Challenges Trump’s New Tariffs in International Trade Court
Press Release
BYDFi Officially Launches On-Chain Trading Tool MoonX, Ushering in the Era of CEX + DEX Dual Engines
Cherry AI: A revenue-backed infrastructure layer positioned for a breakout IDO
