jakiro
Source: Wall Street Journal
Trump takes stake in Binance
The Wall Street Journal reported,Binance reporter Changpeng Zhao (CZ) is actively seeking amnesty from the Trump administration after ending his four-month sentence to re-expand Binance’s U.S. market.(Changpeng is currently Binance’s largest shareholder, but is restricted from participating in the company’s shareholders forever. According to regulations, directors have criminal felony crimes and have an impact))
Binance attempts to enter the U.S. market
According to people familiar with the matter, Binance began to actively contact the Trump family last year, hoping to establish a relationship with the Trump family and re-enter the US market.
It is unclear in what form the Trump family will hold stake in Binance U.S.One possible way is to directly own the Trump family, and the other is to do so through World Liberty Financial, which was founded in September last year.
After Zhao Changpeng was convicted, he still sought Binance to return to the United States
To review, Binance agreed to pay a sky-high fine of $4.3 billion in 2023 to resolve allegations of U.S. regulators against its violations, when Changpeng Zhao was forced to resign from his CEO position but retained a majority stake.
For Binance, if Zhao Changpeng can receive amnesty from the Trump administration, it may improve Binance’s US business development in the international market.
Binance’s U.S. division’s business has since slashed sharply in 2023 due to regulatory pressures, people familiar with the matter revealed that Binance has set up a working group within it, led by current CEO Richard Teng, to assess different options, and pardons may help Binance repair U.S. business that has been damaged by long-term legal disputes.
Binance has studied Justin Sun’s legal strategy internally, and the cryptocurrency entrepreneur became its largest investor by investing in World Liberty Financial for $30 million when facing the Securities and Exchange Commission allegations.Last month, the SEC asked the court to suspend fraud lawsuits against Justin Sun, attracting attention from the Trump administration’s role in it.
Trump family and Binance transactions
World Liberty Financial, co-founded by Trump’s two sons and friend Witkoff, could be a direct beneficiary if the deal was conducted through the company, people familiar with the matter said.
A White House official refuted Tuli’s claim and said Witkoff was involved in Israel-Kazakhstan ceasefire negotiations in the Middle East this week and headed to Moscow on Thursday, where he could meet with Russian President Putin.
It is understood that the Trump administration is still continuing negotiations with Binance.In addition, the SEC announced last month that it would suspend another lawsuit against Binance, which the outside world believes may be related to the Trump administration’s turnover of cryptocurrency policies.
Trump’s family may help him turn things around
Binance United States once reached a valuation of US$4.5 billion in 2022, but due to regulatory issues, its market share plummeted to 1% from 27% in 2023, causing a large number of senior executives to leave.
Binance believes that if Zhao Changpeng gets a pardon, it will be able to lift regulatory barriers to his U.S. business.And pardons will also open the door to the EU. In the EU, companies convicted of shareholders of money laundering and other crimes will be prohibited from applying for crypto-regulatory permits.
At present, World Liberty Financial, the Trump family and Binance have not responded to this transaction, but if the case continues to advance, it will inevitably cause greater controversy among the outside world about the interweaving of Trump’s business and political interests.
