Changpeng Zhao, the founder of cryptocurrency exchange Binance, is reportedly in talks with the Trump family to buy a stake in his firm and receive a pardon from the White House related to a 2023 money-laundering case against his company.
According to sources, Zhao sees these moves as a way to re-enter the U.S. market and facilitate international business operations. This comes after Binance pleaded guilty to violating anti-money laundering requirements and paid a $4.3 billion fine in 2023.
Zhao's reported inspiration is the case of Justin Sun, who invested $30 million in Trump's World Liberty Financial crypto venture and subsequently saw the Securities and Exchange Commission pause an investigation into one of Sun's businesses.
However, Zhao denied any discussions about a Binance US deal, stating that no felon would mind a pardon, especially considering he would be the only one in US history sentenced to prison for a single Bank Secrecy Act (BSA) charge.
The White House, Trump Organization, and Trump Media have not yet responded to requests for comment.
If confirmed, this alliance between Zhao and Trump would mark the latest connection between the former president and the crypto sector, despite Trump's previous dismissal of crypto as "based on thin air."
Both Trump and the First Lady launched crypto projects before the inauguration, and the Trump campaign actively courted the sector during the 2024 election, receiving millions in donations from the industry.
Since then, crypto investors have seen their fortunes rise compared to the Biden years, which took a more aggressive approach and cracked down on what it argued was widespread unregulated securities activity across the industry.
Trump has directed the U.S. to create a national cryptocurrency reserve holding bitcoins and other currencies, and he held the first White House crypto summit this month.
The close ties between the White House and the industry have raised ethical concerns. In February, securities regulators dropped a case against Coinbase, which donated $1 million to the Trump inauguration. Directing the U.S. to hold cryptocurrency could enrich those close to the White House, such as Commerce Secretary Howard Lutnick's son Brandon, who runs Cantor Fitzgerald, a major financial partner for stablecoin issuer Tether and a major stakeholder in MicroStrategy, the world's biggest corporate holder of Bitcoin.
6 Comments
Matzomaster
This is a sign that America is still the land of opportunity. Anyone can succeed here, regardless of their background.
Karamba
There is no conflict of interest here. Trump is simply acting in the best interests of the country.
Rotfront
I'm proud of my country for taking this step forward. We are a leader in innovation and technology.
Karamba
This deal will help to create a more level playing field for everyone. It will allow small businesses to compete with the big banks.
Rotfront
I'm disgusted by this deal and everything it represents. We need to stand up to Trump and his cronies and say that this is not what we want from our country.
Leonardo
This deal is a slap in the face to the victims of cryptocurrency scams. The Trump family is showing that they have no regard for the people who have been hurt by this industry.