- CZ denies any Binance.US deal with the Trump family, slamming the WSJ report
- Despite the denial, the rumor briefly boosted BNB, highlighting market sensitivity
- CZ blames “war on crypto” forces, suggesting lingering political risk for the industry
Former Binance CEO Changpeng Zhao (CZ) has categorically denied a Wall Street Journal report claiming that the Trump family was in talks to acquire a stake in Binance.US. CZ slammed the article, suggesting it was “motivated as an attack on the President and crypto. He tweeted,
“I have had no discussions of a Binance US deal with … well, anyone.” He added: “It’s good to see that even WSJ thinks I should be pardoned.” CZ also highlighted the irony, noting he’s apparently the “only one in US history who was ever sentenced to prison for a single BSA charge.“
The now-disputed Wall Street Journal report had alleged that the Trump family engaged in discussions to acquire a stake in Binance.US, suggesting a potential return of the crypto exchange to the United States. According to sources familiar with the matter, the talks were initiated after Binance reached out to Trump allies last year, seeking a strategic partnership to regain its footing in the American market.
The reported deal could have been facilitated through World Liberty Financial, a Trump-backed crypto venture, raising questions about the intersection of politics, finance, and regulatory scrutiny in the digital asset space.
Original WSJ Report: Alleged Trump Ties and Binance’s U.S. Strategy
Discussions between the Trump family and Binance “reportedly” began at a time when the exchange was struggling under intense regulatory pressure. Former SEC Chair Gary Gensler labeled Binance.US a “cauldron of fraud,” leading to severe crackdowns that resulted in the exchange losing thousands of customers.
Consequently, Binance was forced to lay off 70% of its staff and suffered billions in losses. During these challenges, the company reportedly sought alliances that could help restore its credibility and re-establish operations within the U.S.
Related: Trump to Sign Executive Order Overturning Biden’s Crypto Banking Restrictions
Steve Witkoff, a real estate investor and longtime Trump associate, reportedly played a crucial role in these discussions. Witkoff’s involvement suggested a strategic move to intertwine political influence with financial investment, potentially positioning Binance.US for a revival under a more favorable regulatory climate.
Moreover, World Liberty Financial, founded just two months before Trump’s 2016 election victory, appears to be a central vehicle in this prospective deal, with 75% of its profits funneled toward Trump-related entities.
Regulatory Questions Remain
The reported deal between the Trump family and Binance.US arrived at a time when the exchange was recovering from a $4.3 billion regulatory settlement. Binance’s founder, Changpeng Zhao (CZ), recently completed a four-month prison sentence for anti-money laundering violations, further complicating the exchange’s standing in the U.S.
Despite Zhao now denying any discussions regarding a deal or a presidential pardon, the optics of such negotiations had raised concerns about regulatory influence and the future landscape of crypto governance.
Related: Ukraine ceasefire within 90 days? Polymarket gives Trump 37% chance, with crypto to gain
Additionally, Binance received a $2 billion investment from Abu Dhabi-based MGX, signaling renewed confidence in the platform despite past controversies.
If the reported Trump-backed deal had materialized, it could have potentially cleared the path for Binance.US to rebuild its U.S. presence, especially as Trump has expressed a pro-crypto stance and a willingness to roll back stringent regulations that have hampered the industry’s growth.
Market Reactions and Future Implications
The news of a potential Trump-Binance alliance comes amid notable market movements. Binance’s native token, BNB, has seen a 4.82% increase in the past 24 hours, reflecting investor optimism.
However, it remains down 3.55% over the past week, highlighting lingering market uncertainty. With a circulating supply of 150 million BNB, its market cap currently stands at over $84 billion.
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