Did Binance.US Accidentally Swap Equity for Pardon? CZ Clarifies No Such Thing

Original Title: "Binance US Equity Acquisition Rumor? CZ Quickly Refutes Rumors"

Original Author: 1912212.eth, Foresight News

On March 13, The Wall Street Journal reported, citing sources familiar with the matter, that the Trump family had negotiated an equity stake in the cryptocurrency exchange platform Binance's US subsidiary, Binance.US. Concurrently, sources said that CZ had been urging the Trump administration to pardon him, as CZ still remains the largest shareholder of Binance. The negotiations began last year when Binance reached out to Trump allies proposing a business agreement with the Trump family as part of a plan to bring the company back to the United States. It is currently unclear how the Trump family's stake would be held if the deal is reached or if it is contingent on a pardon. Sources suggest possibilities such as the Trump family holding the stake or the transaction being facilitated through World Liberty Financial.

This news quickly sparked widespread speculation and discussion in the cryptocurrency community. BNB also briefly surged from $580 to $613. Shortly after, Binance founder CZ then posted on X, explicitly denying the veracity of this report, stating that he had never discussed any transactions regarding Binance.US with anyone.

Rumor Mill: Speculation on the Trump Family's Union with Binance.US

According to The Wall Street Journal, representatives of Trump recently held several meetings with top executives of Binance.US to discuss potential collaboration models. The report suggests that the Trump family may directly hold shares of Binance.US or participate indirectly in the platform's operation through World Liberty Financial, founded by Trump. The emergence of this news comes at a time when Trump is re-engaging in the political and business arena, and the family's interest in the crypto field has long been known to the public.

The report also cited anonymous sources stating that Binance.US, as the US branch of the world's largest cryptocurrency exchange Binance, is seeking to enhance its competitiveness in the US market by introducing heavyweight partners. Since CZ was sentenced to four months in prison for violating US anti-money laundering laws in 2024 and resigned as Binance CEO, Binance and its US branch have been working to mend relations with regulatory agencies and have been trying to reshape their brand image through compliant transformation. The potential investment by the Trump family is seen by outsiders as a bold attempt by Binance.US that may aim to leverage Trump's political influence and business resources to further open up the US market.

This rumor quickly sparked a significant reaction from the crypto community. Supporters believe that if the Trump family did indeed invest in Binance.US, it could not only boost the platform's trading volume but also potentially pave the way for a more favorable regulatory environment for the cryptocurrency industry in the United States. However, critics are concerned that the involvement of political figures could exacerbate the speculative atmosphere in the crypto market and even expose retail investors to greater risks.

On March 12, Binance announced a $20 billion investment from MGX. Leading this deal behind the scenes is MGX's board chairman, Takhnoon, who holds multiple key positions in the UAE. The fact that Takhnoon provided the financing also signifies the endorsement and support of his country's sovereign fund, undoubtedly opening up new possibilities for Binance's future development.

Zhao Changpeng's Response: Reports Are False, No Negotiations Ever Occurred

Amidst the swirling rumors, on the evening of March 13, Zhao Changpeng released a statement through his personal X account: "Sorry to disappoint everyone. The article in The Wall Street Journal is factually incorrect. Over 20 people told me they were asked by The Wall Street Journal (and another media outlet): Can you confirm if CZ has engaged in some kind of deal to seek forgiveness?" They may have asked hundreds of people before 20 reached out to me. Essentially, they are doing their best to fabricate a story they can report."

Zhao Changpeng stated, "The fact is: I have never discussed any transaction related to Binance US with anyone. No convicted person would seek forgiveness, especially as the only person in U.S. history to be imprisoned on a single Bank Secrecy Act (BSA) charge. This article seems to intentionally attack the president and the crypto industry, while the remnants of the previous administration's crackdown on the crypto war are still at play. I am always willing to make the crypto industry stronger in the U.S. and globally. It's great to see even The Wall Street Journal thinks I should be pardoned."

It is worth noting that Zhao Changpeng has experienced a dramatic turnaround from imprisonment to release over the past year. Following his release in September 2024, he occasionally spoke out on social media. In recent months, he has become quite active, vigorously advocating for the BNB Chain ecosystem on X several times, reigniting hope in the once-dwindling ecosystem. Although he no longer serves as the Binance CEO and is barred from participating in the company's daily operations, as Binance's largest shareholder, his influence remains significant.

Multiple Interpretations Behind the Event

While the rumor of the Trump family investing in Binance.US has been denied by Zhao Changpeng, the discussions it triggered have revealed the complex situation the cryptocurrency industry currently faces. Trump has openly expressed support for digital assets like Bitcoin in recent years, even pledging to promote the legalization of cryptocurrency during his 2024 campaign. After Trump took office, he did indeed fulfill various promises he made during his campaign, such as establishing a Bitcoin national strategic reserve, among others.

The Binance.US situation has also fueled speculation on this front. Since 2023, Binance and its U.S. branch have been subject to multiple investigations by the U.S. Department of Justice and the Securities and Exchange Commission (SEC) for alleged money laundering, sanctions violations, etc., culminating in a whopping $43 billion fine and Changpeng Zhao's guilty plea. Although Binance.US claims to operate independently from the global Binance ecosystem, its operations in the U.S. market have always been under strict regulatory restrictions. The addition of such a strong supporter as the Trump family could theoretically help the platform garner more policy support, but it could also further escalate tensions with regulatory agencies.

Whether Changpeng Zhao's denial has completely quelled the controversy remains to be seen. Following the release of the denial tweet, Changpeng Zhao continued to tweet, stating that "The news of MGX investing in Binance was directly released on X, Binance Square, and the blog and was not provided exclusively to any traditional media for reporting."

However, as a reputable media outlet, The Wall Street Journal's reports are usually based on certain sources of information. The denial of this rumor may simply indicate that substantive progress has not been made in negotiations yet, or the discussions are in a highly confidential state. There are voices in the crypto community questioning whether Changpeng Zhao's statement is merely a temporary attempt to soothe market sentiment and whether there will be more insider exposure in the future, which remains unknown.

In addition, Bloomberg reported, citing four knowledgeable sources, that the Trump cryptocurrency project WLFI had discussed potential cooperation with the world's largest digital asset exchange platform, Binance Holdings Ltd. It is currently unclear at what stage these discussions have progressed or whether they will ultimately result in a transaction or collaboration. Two of the sources stated that the discussions included the possibility of Binance partnering with WLFI to develop a stablecoin—a cryptocurrency pegged to the U.S. dollar.

Can Changpeng Zhao Be Pardoned?

From the rumor of the Trump family's investment in Binance.US to the denial, a dramatic turnaround occurred in just a few hours. Meanwhile, He Yi also joined the discussion on social media, focusing her comments on the pardon issue: "Why doesn't CZ try applying for a pardon from Trump? What if a pardon really happens? One should believe that good things will always happen." and tagged the Trump X account.

Both Sam Bankman-Fried (SBF) and Changpeng Zhao have been rumored to hope for pardons from the Trump administration, but the probabilities of pardon for the two differ due to their case backgrounds, political affiliations, and Trump's decision-making tendencies. SBF, as the founder of FTX, was sentenced to 25 years in prison for large-scale fraud. His high-profile donations to the Democratic Party may have made him lack political appeal in Trump's eyes, although his family is seeking opportunities by engaging with Trump allies, Trump's lukewarm attitude toward Democratic Party affiliates may reduce the likelihood of his pardon to a lower level.

In contrast, Zhao Changpeng was sentenced to only 4 months for violating anti-money laundering laws, his offense was less severe, and Binance's influence in the crypto industry may make him more valuable in terms of trading. Trump's recent supportive stance on cryptocurrency and Zhao Changpeng's willingness to cooperate may have increased his chances of being pardoned.

However, Trump's pardon decisions are often based on personal relationships or political interests, and there is a lack of direct evidence to show that the two have established a strong connection with his inner circle, so the final outcome remains highly uncertain.

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