The Wall Street Journal: Binance's Negotiations with Trump Family Business and the Cloud of Pardons

Original Title: Binance Seeks to Curb U.S. Oversight While in Deal Talks With Trump’s Crypto Company
Original Authors: Angus Berwick, Patricia Kowsmann, Rebecca Ballhaus, The Wall Street Journal
Translation by: Rhythm Little Deep

Editor’s Note: Binance executives recently met with officials from the U.S. Treasury Department to seek a relaxation of regulatory oversight on the company, including the removal of AML compliance oversight by regulators, while negotiating a partnership with the Trump family's crypto company, World Liberty Financial, to launch its dollar-pegged stablecoin. This move could bring substantial profits to the Trump family, while Binance hopes to leverage Trump's presidential power to escape legal troubles and return to the U.S. market.

Here is the original content (reorganized for readability):

April 11, 2025, 9:00 PM (Eastern Time)

According to insiders, executives from the cryptocurrency exchange Binance met with U.S. Treasury officials last month in Washington to discuss easing government oversight on the company, while also exploring business transactions with the Trump family's crypto enterprise.

Insiders indicated that Binance executives requested Treasury officials to eliminate U.S. regulatory oversight regarding the exchange's compliance with anti-money laundering laws. This would be the first step for the company to return to the U.S. market, having pleaded guilty in 2023 for violating anti-money laundering laws.

According to other insiders, Binance is also negotiating the launch of a new dollar-pegged cryptocurrency supported by the Trump family-backed World Liberty Financial. Launching this token, known as a stablecoin, could allow it to quickly enter a massive market and potentially bring billions of dollars in profits to the Trump family.

These transactions signify an increasingly close alliance between the Trump family and Binance, the world's largest cryptocurrency exchange. Binance has paid a record $4.3 billion in fines for allowing terrorists, drug traffickers, and sanctioned entities to transfer billions of dollars through its exchange. Before the Treasury talks, Binance had already begun discussions with representatives of the Trump family regarding the transactions.

For World Liberty Financial, Binance's market influence could help it become a significant player in the crypto industry. Binance has over 250 million users and processes about $65 billion in transactions daily.

The more dollar stablecoins (USD1) in circulation, the more the Trump family profits from the assets supporting the token's value. The largest stablecoin issuer, Tether, reported $13 billion in profits last year.

For Binance, Trump's presidential power could help the company escape legal troubles. The agreement reached with U.S. authorities in 2023 imposed strict restrictions on the once freely operating exchange, requiring it to offboard all U.S. customers, report all previous suspicious transactions, and cooperate with two independent regulators appointed by the Treasury and Justice Departments, overseeing for five and three years, respectively.

As previously reported by The Wall Street Journal, Binance is also seeking a pardon for its convicted founder, CZ. After pleading guilty to related charges last year, CZ served four months in prison, and a pardon would make it easier for the company to return to the U.S.

Former Binance CEO CZ leaves the courtroom after sentencing last year
Image Source: JASON REDMOND/AFP/GETTY IMAGES

The Wall Street Journal reported last month that representatives of the Trump family also discussed acquiring a stake in Binance U.S., the independent and currently struggling U.S. branch of Binance.

A Treasury official stated that the meeting with Binance was one of dozens of meetings the agency has held with the crypto industry. A spokesperson for World Liberty Financial stated that the company's goal is to make the dollar stablecoin (USD1) "available for millions of people worldwide."

CZ declined to comment through a Binance spokesperson. Last month, CZ stated on the X platform that he had no business dealings with World Liberty Financial and had not discussed any transactions regarding Binance U.S. with anyone. He added, "No criminal would mind receiving a pardon."

A Binance spokesperson stated, "It is exciting to see the incredible momentum of the U.S. crypto movement revitalized under the new government and congressional leadership. We are eager to support any government seeking to balance innovation and user protection in digital asset regulation."

A White House spokesperson stated that it would not disclose who is or is not being considered for a pardon.

"Ending Law Enforcement as Regulation"

The alliance between the Trump family and Binance began at a crypto conference in Abu Dhabi last December, just weeks before the inauguration. In a "whale-only" backstage area, attendees with $10,000 VIP passes could enter, where CZ interacted with Trump's son Eric and Trump's ally, soon-to-be Middle East envoy Steve Witkoff. Witkoff told attendees that he would promote the development of cryptocurrency in the new government.

Eric promoted the upcoming digital currency golden age under his father's leadership and advocated for World Liberty Financial, co-founded by the Trump family and Witkoff and his son months earlier. The conference also offered a 21% discount on tickets using the discount code "TRUMPPUMP21." Eric and a spokesperson for the Trump organization did not respond to requests for comment.

Co-founders of World Liberty Financial take the stage, from left to right: Chase Herro, Zach Witko, and Zak Folkman. Donald Trump Jr. is on the screen.
Image Source: KENT NISHIMURA/BLOOMBERG NEWS

At that time, CZ was seeking a pardon, expressing in public speeches that U.S. regulation of the crypto industry was too strict. He said, "You have to stop using law enforcement as regulation."

Insiders indicated that after the meeting, business negotiations regarding Binance U.S. equity and the dollar stablecoin accelerated in the following months.

The Trump administration quickly made progress in easing cryptocurrency regulations. In recent weeks, the Justice Department suspended its corporate oversight program and disbanded its cryptocurrency division, which had assisted in the 2023 case against Binance. The Justice Department announced this initiative in a memo titled "Ending Law Enforcement as Regulation."

According to insiders, Binance still needs to deal with the regulators appointed by the Treasury, which are considered more burdensome.

Insiders stated that Binance executives had conflicts with Treasury regulators, with less severe disagreements with Justice Department regulators, mainly revolving around the regulators' access to the company, including the ability to interview employees and review documents.

According to insiders, during last month's meeting with the Treasury, Binance CEO Changpeng Zhao and Chief Legal Officer Eleanor Hughes requested that the Treasury eliminate or shorten the duration and scope of the oversight.

Binance executives are optimistic that the Trump administration will agree to their requests. Insiders indicated that exchange employees have been discussing adjustments to their anti-money laundering controls, with some employees believing this is to relax checks on high-risk clients.

A Binance spokesperson stated that the regulators have created a "costly and inefficient burden." He added that Binance "is fine-tuning the rules but is not relaxing controls."

A Series of Crypto Criminals

According to insiders, Binance began reaching out to Trump's allies around the 2024 election. An internal special task force was established to explore returning to the U.S. under the Trump administration and seeking a pardon for CZ.

Even before the December meeting, CZ had been in contact with the World Liberty Financial team. Witkoff's son Zach referred to CZ as "the wise one" on X. Last October, World Liberty Financial hired CZ's close friend, Rich Teo, to assist in launching its stablecoin; Teo had previously requested leniency from the judge presiding over CZ's case.

A spokesperson for World Liberty Financial stated, "Almost every leading company in the digital asset industry has interacted with Binance." She added, "We are very grateful for CZ's many contributions to the cryptocurrency industry, and perhaps even more for his charitable work."

The Trump family's acceptance of Binance reflects dynamics within the White House. Crypto tycoons previously pursued by earlier administrations for helping U.S. adversaries transfer funds—Russian sanctions evaders, Islamic terrorist organizations, Mexican drug cartels, global scam syndicates—are now doing business with the president and his inner circle.

Trump has already pardoned a series of crypto criminals, including BitMEX co-founder Arthur Hayes, who pleaded guilty to violating the same U.S. anti-money laundering laws as CZ.

Justin Sun, founder of the Tron blockchain network, is the largest external investor in World Liberty Financial and provides consulting for the company. According to blockchain research firm TRM Labs, over half of the illegal crypto activity last year—approximately $26 billion—occurred on Tron.

In February of this year, after investing $75 million in World Liberty Financial's tokens, the U.S. Securities and Exchange Commission requested a court to suspend its fraud lawsuit against him.

According to insiders, during the Biden administration, the Justice Department has been investigating Sun for alleged financial crimes. It is unclear whether this investigation is still ongoing.

Insiders stated that as part of CZ's plea agreement, he agreed to provide prosecutors with evidence regarding Sun. This arrangement had not been previously reported. The Justice Department declined to comment.

Sun's representatives declined to comment on "unfounded allegations regarding legal matters" and stated that claims about Tron facilitating criminal activity are incorrect.

Last December, Sun also interacted with VIPs in the backstage area of the Abu Dhabi conference, distributing miniatures of his recently purchased $6 million banana art piece.