Changpeng Zhao Dismisses Allegations of Trump Family Investment in Binance US
Changpeng Zhao, known as CZ, the visionary behind Binance, the premier cryptocurrency exchange globally, has categorically denied any claims suggesting potential investment discussions involving the Trump family and Binance’s American operations. These assertions emerged following a report by the Wall Street Journal that indicated possible negotiations about a financial stake in Binance’s US division.
Clarification from Binance’s Former CEO on Speculative Claims
In a prompt reaction via X, formerly recognized as Twitter, Zhao clarified, “Apologies to disappoint. The WSJ got the facts wrong. Fact: I have had no discussions of a Binance US deal with…well, anyone.”
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Furthermore, Bloomberg highlighted that the Trump family’s initiative, World Liberty Financial (WLFI), had engaged in preliminary talks with Binance regarding potential collaborations, including creating a new US dollar-backed stablecoin. However, the specifics of these discussions remain ambiguous. Notably, Zhao met with Steve Witkoff, World Liberty’s co-founder and former President Trump’s Middle East envoy, at the Bitcoin MENA 2024 conference in Abu Dhabi, three months post his release from a halfway house.
Zhao criticized Bloomberg’s report for lacking concrete evidence and relying heavily on conjecture. He underscored that Binance had no business interactions with World Liberty or its representatives and had not procured any World Liberty Foundation (WLF) tokens.
CZ Confronts Pardon Speculations
The Wall Street Journal’s narrative suggested ongoing discussions about a potential Trump family investment since last year, referencing anonymous sources allegedly familiar with the situation. The report touched upon Zhao’s past legal challenges, which involved a guilty plea to criminal charges concerning Binance’s oversight lapses in anti-money laundering practices, leading to a four-month incarceration.
In his comments on X, Zhao insinuated that the Journal’s piece was politically charged, mirroring a lingering anti-crypto stance from the Biden administration. He voiced concerns that these accounts form part of a broader “war on crypto,” initiated by the preceding administration.
Addressing the notion of seeking a presidential pardon, Zhao stated, “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.”
Binance US Restores Operations Amid Legal Challenges
The timing of Zhao’s rebuttal is noteworthy, as Binance’s US operations have recently resumed American dollar-backed fiat services after a hiatus of nearly two years, marking its resurgence as a fully operational cryptocurrency exchange in the United States.
Binance encountered substantial hurdles in the US following accusations by the Department of Justice (DOJ) of violating anti-money laundering (AML) regulations and operating without appropriate licensure, resulting in a historic $4.3 billion settlement in 2023. As part of the settlement, Zhao admitted guilt to related charges and resigned as Binance’s CEO, serving a four-month sentence before his release in September of the previous year.
Despite ongoing litigation with the Securities and Exchange Commission (SEC), there are indications that these legal issues may soon be resolved. The SEC has temporarily halted litigation against Binance for 60 days as it finalizes multiple lawsuits against other crypto enterprises.
Currently, Binance Coin (BNB), the exchange’s native token, is trading around $576, experiencing a 3% increase over the last 24 hours.
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