Members of President Donald Trump's family are in discussions to acquire a financial interest in Binance.US, the American branch of the world's top cryptocurrency exchange.
What Happened: This potential deal coincides with efforts by Binance (CRYPTO: BNB) founder Changpeng Zhao, who spent four months in prison after a 2023 guilty plea for anti-money-laundering violations, to secure a pardon from the Trump administration, according to The Wall Street Journal.
Zhao, still the majority shareholder, initiated talks with Trump allies last year as part of a strategy to bring the company, which faced a $4.3 billion fine and operates without a fixed base since its 2017 Shanghai launch, back to the U.S. market.
The nature of the Trump family's stake remains unclear, with options including a direct investment or integration through World Liberty Financial, a Trump-backed crypto venture launched in September.
Steve Witkoff, a longtime Trump associate now handling Middle East and Ukraine negotiations, has been linked to the discussions, though an administration official denied his involvement, noting his ongoing divestment from business interests.
The talks persist post-inauguration, with Binance forming a task force under CEO Richard Teng to explore re-entry options, complicated by Zhao's conviction and the U.S. arm's decline from a 27% market share in 2023 to just over 1%, with a valuation drop from $4.5 billion.
Binance.US's troubles escalated after U.S. officials accused it of aiding sanctioned groups like Hamas and Islamic State, prompting a 2019 probe that led to the separate U.S. platform as a regulatory distraction.
Most senior staff departed amid 2023 legal challenges, and the recent $2 billion minority stake purchase by UAE's MGX highlights ongoing efforts to stabilize.
A pardon could merge Binance and Binance.US, easing European market access where criminal shareholders face licensing bans, and revive competition with Coinbase (NASDAQ:COIN).
Why It Matters: The SEC paused a civil case against Binance last month, mirroring a similar halt in a lawsuit against Tron's (CRYPTO: TRON) Justin Sun, who invested $30 million in World Liberty Financial, fueling speculation of a pardon-for-investment strategy.
Trump's business overlap with his presidency continues, with family members managing assets and pursuing deals, including Melania Trump's $40 million documentary deal and financial settlements funding a presidential library.
Unlike typical presidents who use blind trusts, Trump relies on his children, exempt from conflict-of-interest rules but bound by constitutional limits on foreign government payments.
The Trump Organization clarified it avoids foreign government deals but left open private company ventures, amid criticism of World Liberty Financial's potential for undisclosed foreign funding.
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