Trump-Binance Deal Allegations Persist Despite CZ’s Denials

Recent reports have reignited discussions around potential business dealings between World Liberty Financial (WLFI), a project associated with the Trump family, and Binance. This comes shortly after Binance co-founder Changpeng ‘CZ’ Zhao attempted to dismiss an explosive WSJ article shedding light on these claims.

According to Bloomberg, sources confirm that WLFI was exploring launching a new USD-backed stablecoin in collaboration with Binance. However, there was no mention of CZ seeking a pardon from Trump, a key aspect of the WSJ report.

Is Trump Considering an Investment in Binance?

Earlier reports suggested that the Trump family was in negotiations to acquire a significant stake in Binance.US. The speculation included allegations that CZ was hoping for a presidential pardon as part of the deal. CZ publicly denied these allegations via social media, focusing solely on his own involvement or lack thereof, stating, “I have had no discussions of a Binance US deal with anyone.” He further implied that the article was an affront to both the President and the cryptocurrency sector.

<p>“No felon would mind a pardon, especially considering the uniqueness of my situation with a single [Bank Secrecy Act] charge. The article seems to be motivated by a bias against the President and crypto. I aim to promote crypto's success everywhere,” CZ asserted.</p>

However, Bloomberg stands firm on the claim that legitimate discussions took place between Binance and the Trump family. Following CZ’s denial, the publication referenced four anonymous sources who provided insights into these talks. Central to this possible partnership would be WLFI, the Trump-affiliated token project.

While President Trump does not directly manage WLFI, its website indicates involvement from his son Eric, who is listed as a manager. It also states that various family members of Donald J. Trump may hold WLFI tokens and share in the project's revenue.

In the discussions, WLFI was reportedly considering the development of a new dollar-pegged stablecoin with Binance. It is also believed they contemplated acquiring a significant stake in Binance.US; however, there’s no evidence suggesting either President Trump or CZ participated directly in these dialogues.

Moreover, the former President has been under scrutiny regarding potential conflicts of interest related to his TRUMP token, making any partnership with Binance considerably more precarious. His influence over federal regulatory decisions could significantly impact Binance's operations, elevating the overall tension surrounding this speculation.

Nevertheless, Bloomberg’s article refrains from jumping to conclusions. Notably, the sources did not substantiate the WSJ's assertion regarding CZ's alleged request for a pardon. The fact that other individuals in the crypto sphere have sought similar considerations from President Trump highlights the complexities surrounding this narrative.

Another point to consider is that WLFI has previously engaged in significant partnerships within the crypto industry while President Trump has been in office, indicating that any potential collaboration with Binance could be a standard business operation.

Recent claims suggest that Steve Witkoff, a co-founder of WLFI and a key diplomatic envoy for Trump, met with CZ at a December conference, though concrete evidence linking Binance to Trump remains scarce. Importantly, both individuals spoke at the Bitcoin MENA 2024 conference on the same day, suggesting a meeting might have occurred.

CZ later responded to the Bloomberg coverage, labeling the article a “baseless hit piece” and referred to a defamation suit he filed against the publication last year. His critiques, however, lacked substantial evidence to refute the claims made in the article, other than a reiteration that he and Binance have no current business arrangements with WLFI or its representatives.

<p>“Fact: I/Binance have no business deals with WLFI or the people mentioned in their article. We also did not buy any of the WLFI coins,” CZ stated.</p>

To date, Bloomberg has not asserted that any deal has been finalized or that Binance has purchased any WLFI tokens; the discussions remain just that—discussions. As a result, the speculation continues amidst the intriguing dynamics of the crypto landscape.