Changpeng Zhao (CZ), the founder and former CEO of Binance, the world’s largest cryptocurrency exchange, has publicly refuted claims regarding potential investment discussions involving the Trump family and Binance’s American operations.
This denial follows a report by the Wall Street Journal, which suggested that representatives of the Trump family have been in negotiations to acquire a financial stake in Binance’s US arm.
Binance’s Former CEO Responds To Speculative Reports
In a swift response posted on X (formerly Twitter), Zhao stated, “Sorry to disappoint. The WSJ article got the facts wrong. Fact: I have had no discussions of a Binance US deal with…well, anyone.”
Bloomberg also reported on Thursday that the Trump family’s project, World Liberty Financial (WLFI), had previously engaged in talks with Binance about potential collaboration, including the development of a new US dollar-backed stablecoin. However, it is unclear whether any substantial agreements were reached.
Notably, Zhao reportedly met with Steve Witkoff, co-founder of World Liberty and former President Trump’s Middle East envoy, at the Bitcoin MENA 2024 conference in Abu Dhabi three months after his release from a halfway house.
Yet, Zhao criticized Bloomberg’s report, indicating it lacked substantive evidence and was based largely on speculation. He emphasized that neither he nor Binance had any business dealings with World Liberty or its representatives, nor had they acquired any World Liberty Foundation (WLF) tokens.
CZ Addresses Pardon Speculation
The Wall Street Journal’s account on the other hand, claimed that discussions about a potential investment by the Trump family have been ongoing since last year, citing unnamed sources familiar with the matter.
The report also alluded to Zhao’s past legal troubles, including his plea of guilty to criminal charges related to Binance’s failure to properly monitor for money laundering, which resulted in a four-month prison sentence.
In his posts on X, Zhao suggested that the Journal’s article was politically motivated, reflecting an ongoing anti-crypto sentiment from the Biden administration. He expressed concerns that these narratives are part of a broader “war on crypto” that extends from the previous administration.
CZ also addressed the idea of seeking a presidential pardon, stating, “No felon would mind a pardon, especially being the only one in US history who was ever sentenced to prison for a single BSA charge.”
The timing of Zhao’s denial is significant, as Binance’s US division recently reinstated its American dollar-backed fiat services after nearly two years, marking its return as a fully operational crypto exchange in the country.
Binance faced significant challenges in the US after the Department of Justice (DOJ) charged the company with violating anti-money laundering (AML) laws and operating without a proper money transmitter license, leading to a record $4.3 billion settlement in 2023.
As part of this agreement, Zhao pled guilty to related charges and stepped down as Binance’s CEO, serving four months in prison before his release in September of the past year.
While Binance continues to navigate ongoing litigation with the Securities and Exchange Commission (SEC), there are signs that these legal challenges may be drawing to a close. The SEC has paused litigation against Binance for 60 days as it concludes multiple lawsuits against other crypto firms.
At the time of writing, Binance Coin (BNB), the exchange’s native token, was trading at $576, up 3% in the last 24 hours.
Featured image from DALL-E, chart from TradingView.com
