After CZ partially refuted a shocking WSJ article, Bloomberg used its own sources to confirm some of the claims. They stated that World Liberty Financial (WLFI), a project associated with the Trump family, had considered a business collaboration with Binance.
However, the report did not subsequently mention CZ attempting to seek a pardon from Trump. Reportedly, WLFI had discussed with Binance the launch of a new USD-backed stablecoin.
Is Trump planning to invest in Binance?
This morning, a WSJ report claimed that the Trump family was discussing the acquisition of a significant stake in Binance.US. One of the main rumors was that Changpeng "CZ" Zhao, the former CEO of Binance, was seeking a pardon as part of the deal. CZ denied these allegations on social media, but his denial only focused on his personal actions.
"I have never discussed a deal with Binance US with... anyone. No criminal wouldn't want a pardon, especially the only person in US history to be convicted of jail time for just one charge [Bank Secrecy Act]. It feels like this article is written to attack the President and crypto. I'm always happy to make crypto great everywhere," CZ said.
However, Bloomberg confirmed that there have been serious negotiations between Binance and the Trump family. After CZ's denial, the newspaper cited four anonymous sources claiming knowledge of these discussions. Clearly, the key link in this potential collaboration would be World Liberty Financial (WLFI), a token project associated with Trump.
Although the President does not directly control any aspect of WLFI, its website states that his son, Eric, "is one of the managers on the board of directors." Furthermore, "certain members of the Donald J. Trump family" hold WLFI tokens and may receive a significant portion of its revenue.
In these alleged discussions, the Trump-affiliated project had considered developing a new USD-backed stablecoin with Binance. WLFI was also said to have considered acquiring a significant stake in Binance.US, though the report does not allege that either President Trump or CZ were directly involved in these discussions.
President Trump has faced severe criticism over the potential conflicts of interest with his TRUMP token, and a partnership with Binance could be even more controversial. The President's directives to federal agencies have significantly impacted the company's operations. In other words, this situation could further escalate concerns about corruption surrounding political meme coins.
However, Bloomberg's article is not quick to draw serious conclusions. One thing is that their sources did not confirm WSJ's claim that CZ wanted a pardon. Since Trump pardoned Ross Ulbricht, other crypto criminals like Sam Bankman-Fried have also lobbied the President. However, wanting a pardon is not illegal. CZ said "no criminal wouldn't want a pardon," not that he had requested one.
Additionally, WLFI has made significant crypto partnerships since Trump took office, and this is not their first outside investment. Even if WLFI representatives are planning to collaborate with Binance, that does not necessarily mean the exchange will have a close relationship with Donald Trump. It could be a routine business activity, but still raises concerns.
Ultimately, the situation is very ambiguous. Bloomberg's sources also claimed that Steve Witkoff, a co-founder of WLFI and one of Trump's key diplomatic envoys, met with CZ at a conference in December. No one other than the newspaper's anonymous sources has disclosed a direct link between Binance and Donald Trump. No one has directly refuted this either.
For example, CZ responded a second time, also criticizing Bloomberg's article. He called it "a baseless attack piece" and "completely imaginary," and referenced the 2022 defamation lawsuit he had filed against the newspaper. However, aside from these personal attacks, he only made one direct and substantive statement:
"Fact: I/Binance have no business deal with WLF or the individuals mentioned in their article. We also have not purchased any WLF tokens," he said.
Bloomberg never suggested that such a deal had occurred or that Binance had purchased any WLFI tokens. They only stated that the issue had been discussed. Additionally, Witkoff and CZ were both speakers on the same day at the Bitcoin MENA 2024 conference. Public records show that a meeting may have taken place. In fact, CZ did not refute anything substantial.
