CZ Denies Trump-Binance Deal Allegations, Calls WSJ Report Misleading
Changpeng “CZ” Zhao has vigorously rebutted allegations suggesting that members of former President Donald Trump’s family engaged in discussions to take a financial interest in Binance.US. This statement came in response to a report from the Wall Street Journal (WSJ), which indicated that such conversations had indeed occurred.
Zhao took to social media on March 13 to clarify his position, asserting that he has not engaged in any discussions about a Binance US deal “with… well, anyone.” He reported that over 20 individuals reached out to him, stating they had been contacted by the WSJ and other outlets to verify speculation regarding a deal tied to clemency.
The WSJ article claimed that Zhao was pursuing a presidential pardon from Trump, a move that could enable him to resume an operational or managerial role at Binance. According to the report, Binance allegedly approached Trump’s associates with a proposal aimed at bolstering its U.S. operations last year.
Zhao regarded the report as politically motivated, arguing that it served as an “attack on the President and crypto.” He expressed concerns that remnants of the previous administration’s “war on crypto” efforts continue to linger, complicating the current landscape for digital assets. Zhao, who previously faced legal issues related to U.S. anti-money laundering laws, highlighted his unique place in history as the only person to receive a prison sentence for a single violation of the Bank Secrecy Act, remarking, “No felon would mind a pardon.” He reaffirmed his commitment to advancing cryptocurrency in both U.S. and global markets.
In an important development for Binance, the company settled a significant legal matter with U.S. authorities in November 2023, agreeing to pay $4.3 billion in fines for failing to implement an adequate anti-money laundering program. As part of this settlement, Zhao pleaded guilty and subsequently resigned as CEO, reportedly barred from a management position at Binance under the agreement’s terms. Should Zhao receive a presidential pardon, it could potentially reshape the company’s operational capacity within the U.S. market.
The regulatory environment for digital currencies has evolved since Trump’s administration took office, with a noted shift towards a more favorable stance on digital assets. The current landscape, now under acting Chair Mark Uyeda at the U.S. Securities and Exchange Commission (SEC), has seen a softening in enforcement actions against crypto firms. Notable cases, including those involving Binance and Coinbase, have experienced pauses or dismissals amid this changing regulatory approach.
