Changpeng Zhao Rejects WSJ Claims of Trump Deal, Calls It an Attack on Crypto

A fresh wave of controversy has engulfed Binance and its founder, Changpeng Zhao (CZ), following a report by the Wall Street Journal (WSJ) suggesting he sought a pardon from former President Donald Trump. The report also claimed Trump’s family was exploring a stake in Binance.US, the exchange’s American arm. But CZ has denied it all, calling the allegations baseless and politically motivated.

Binance’s Push to Return to the US

Binance has been trying to reestablish itself in the US after regulatory setbacks forced it to scale down its operations. According to sources cited by WSJ, the crypto exchange had been working behind the scenes to repair its standing.

A key strategy, reportedly, was connecting with Trump’s allies. The idea was to strike a deal with the Trump family, potentially giving them a financial stake in Binance.US. With Trump’s growing influence in Washington, Binance saw this as a way to navigate regulatory hurdles and re-enter the American market in full force.

There’s no public evidence that such talks led to any formal agreements. Still, the report has sparked debate about Binance’s tactics and the political maneuvering behind the scenes.

The SEC Case and CZ’s Legal Troubles

Zhao’s legal troubles in the US have been a major stumbling block for Binance. In 2023, he pleaded guilty to violating anti-money laundering rules, leading to a four-month prison sentence. The same year, Binance agreed to pay a massive $4.3 billion settlement to resolve its case with the US Securities and Exchange Commission (SEC).

This settlement marked a significant blow to Binance’s global operations. It also left Zhao personally vulnerable, given the increased scrutiny on crypto executives by US regulators. The WSJ report suggested that in an effort to clear his name, Zhao sought a presidential pardon from Trump. If granted, such a pardon could have paved the way for a stronger Binance.US comeback.

Zhao’s Strong Denial and Criticism of WSJ

CZ wasted no time in responding to the allegations. He firmly denied the report, stating that the WSJ article misrepresented facts and was aimed at damaging both Trump and the US crypto industry.

• He claimed WSJ reached out to at least 20 people to confirm the story but failed to find substantial evidence.
• He insisted there had been no talks with anyone about a potential deal involving Binance.US.
• He suggested the report was part of a broader effort by critics of Trump and the crypto sector to undermine both.

Zhao also took issue with his legal treatment, arguing that no one else in US history had been sentenced to prison for a single violation of the Bank Secrecy Act.

Political and Crypto Industry Reactions

The WSJ report has reignited debates over political influence in crypto regulation. With Trump’s return to the political spotlight, questions about his potential impact on the crypto industry are gaining traction.

• Pro-Trump crypto enthusiasts see the story as an attempt to discredit both Trump and digital assets.
• Critics argue it highlights the blurred lines between politics and financial regulation.
• Some legal experts question whether a Trump-aligned Binance.US would face less scrutiny under a Republican administration.

Whatever the case, the controversy has put Binance back in the headlines at a time when regulatory pressure on crypto firms remains high. The intersection of business, politics, and digital finance continues to be as volatile as the crypto market itself.