Reported Binance and Trump Deal – Did The Trump Family Buy Stakes in Binance?
Industry News
After his release last year, circulating news suggested that ex-Binance CEO Changpeng Zhao negotiated an acquisition deal in exchange for his pardon.
Such a move would not be a surprise, given the pro-crypto stance Trump has been following, starting from accepting BTC in his presidential campaign to the recent launch of $TRUMP and $MELANIA.
As the news about Binance and Trump circulates, the BNB coin price surges, and analysts speculate on the outcomes and motives behind this story.
The Binance and Trump Deal
According to a Wall Street Journal report, representatives of the Trump family have engaged in discussions about acquiring a financial stake in Binance’s US corporation. This move comes after the crypto exchange faced regulatory challenges, leading to a significant portion of its operations being conducted overseas.
The negotiations reportedly began last year when Binance approached allies of President Trump, proposing a business arrangement that could facilitate the company’s re-entry into the US market.
Steve Witkoff, a close associate of the Trump family, has been identified as a key figure in these negotiations. The discussions have reportedly touched upon potential collaborations with World Liberty Financial, a cryptocurrency initiative promoted by the Trumps.
While specific details of the potential Binance US deal remain undisclosed, the involvement of high-profile political figures in such negotiations raises questions about conflicts of interest and the influence of personal relationships on regulatory decisions.
However, ex-Binance CEO Changpeng Zhao (CZ) has publicly denied these reports. He emphasized that while he “wouldn’t mind” a presidential pardon, the allegations of such an arrangement involving the Trump family’s investment are inaccurate.
CZ suggested that such reports might be politically motivated, aiming to attack the President and the cryptocurrency industry.
CZ Pardon Request
In November 2023, CZ pleaded guilty to money laundering, resulting in a $50 million fine and a four-month prison sentence. Binance agreed to pay a $4.3 billion penalty as part of the settlement.
Eventually, CZ served his sentence and was released in September 2024. However, despite completing his sentence, the Binance founder has been seeking a presidential pardon to fully absolve his criminal record.
A pardon would not only clear his name but also potentially facilitate the exchange’s efforts to regain a stronger foothold in the US market amidst the easing crypto regulations.
Impact on BNB Crypto Price
The news led to speculation about the motivations behind these discussions and created bullish BNB cryptocurrency movements.
The native Binance coin, BNB, experienced a notable price increase. On March 13, the coin’s price surged by approximately 5%, surpassing the $600 mark for the first time in a week before declining slightly to $580.
This surge reflects increasing investor optimism regarding the potential to strengthen the exchange’s position in the US market through high-profile partnerships.
However, it is important to note that such price movements can be influenced by various factors, and the sustainability of this increase depends on the progression and outcomes of the reported CZ and Trump negotiations.
Trump Crypto Policy
President Donald Trump has exhibited a growing interest in the cryptocurrency sector, introducing bills to support the crypto space and revoking restrictions imposed by the previous SEC administration.
In a recent move, Trump signed an executive order to establish a strategic crypto reserve, a move that aims to resolve the striking national debt and boost the local economy.
Last year, the Trump family launched the World Liberty Financial protocol to underscore their commitment to crypto integration. This initiative aims to create a global financial platform leveraging blockchain technology, aligning with the increasing institutional interest in cryptocurrencies.
Supporters argue that it positions the country at the forefront of digital currency adoption, while critics raise concerns about potential conflicts of interest and speculation risks associated with decentralized currencies.
Final Thoughts
The Binance and Trump negotiations highlight the connection between politics, business, and the crypto industry. While the potential investment could signify a mainstream acceptance of digital assets, it also raises concerns about regulatory oversight, ethical considerations, and the future of crypto adoption in the United States.
Disclaimer: This article is for informational purposes only. It is not finance advice and should not be relied upon for investment decisions. Always do your own research and consult a financial advisor before investing.
