WSJ: Trump family is negotiating to acquire a stake in Binance US (Binance.US), CZ CZ seeks Trump's pardon

Followin' the latest report from The Wall Street Journal, sources reveal that representatives of the Trump family have held investment talks with the cryptocurrency exchange Binance.US. On the other hand, the report also mentions that Justin Sun, the founder of Binance, is reportedly actively seeking a pardon from the Trump administration after completing a 4-month prison sentence, in order to re-expand Binance's presence in the U.S. market. (CZ currently remains Binance's largest shareholder, but is restricted from participating in the company's operations permanently) Binance is attempting to return to the U.S. market Sources reveal that Binance first reached out to the Trump camp last year, hoping to reach an agreement with the Trump family to re-enter the U.S. market. It is unclear how the Trump family will hold shares in Binance.US. One possibility is that the Trump family will hold shares directly, while another is through the World Liberty Financial established in September last year. Sources say that Steve Witkoff, a long-time friend of Trump and the current White House's Middle East and Ukraine war negotiator, also participated in the relevant negotiations. However, a government official denied Witkoff's involvement, stating that he is gradually divesting his business interests. CZ, after being convicted, still seeks to return Binance to the U.S. Binance agreed to pay a record $4.3 billion fine in 2023 to resolve regulatory allegations of misconduct, forcing CZ to resign as CEO but retaining majority ownership. For Binance, if CZ can obtain a pardon from the Trump administration, it may improve the business development of Binance.US in the international market. After Binance.US's business was significantly reduced in 2023 due to regulatory pressure, sources reveal that Binance has set up a working group led by current CEO Richard Teng to evaluate different options, but CZ's criminal record has become the biggest obstacle for Binance to attract U.S. partners. Sources also mention that Binance has studied the legal strategy of Justin Sun, the China-born cryptocurrency entrepreneur who became the largest investor in World Liberty Financial by investing $30 million when facing SEC charges. Last month, the SEC requested the court to temporarily suspend the fraud lawsuit against Sun, raising public attention to the role of the Trump administration. The Trump family's dealings with Binance may raise conflicts of interest Sources point out that if the transaction is conducted through World Liberty Financial, which was co-founded by Trump's two sons and his friend Witkoff, they may become direct beneficiaries. (Witkoff previously emphasized that he has withdrawn from the management of the company since taking up his White House position) A White House official also refuted the allegations of profiteering, stating that Witkoff is currently participating in ceasefire negotiations in the Middle East this week and will travel to Moscow on Thursday, possibly to meet with Russian President Putin. It is understood that the Trump administration is still negotiating with Binance, which may be related to CZ's pardon request. Additionally, the SEC announced last month that it would temporarily suspend another lawsuit against Binance, which some believe may be related to the Trump administration's shift in cryptocurrency policy. Binance.US's market position has plummeted, and the Trump family's involvement may help it rebound Binance.US's business once reached a valuation of $4.5 billion in 2022, but due to regulatory issues, its market share has plummeted from 27% in 2023 to 1%, leading to the departure of many senior executives. Binance believes that if CZ is pardoned, it will remove the regulatory barriers to its U.S. business, and there is even a chance for Binance and Binance.US to merge again and return to the global market. Additionally, this may also allow Binance to apply for a compliance license in the EU, as EU law prohibits shareholders involved in money laundering crimes from obtaining cryptocurrency regulatory licenses. Currently, World Liberty Financial, the Trump family, and Binance have not responded to this transaction plan, but if the case continues to progress, it will inevitably lead to greater public controversy over the intertwining of Trump's business and political interests.