In a new development, Binance founder Changpeng “CZ” Zhao has called a Wall Street Journal (WSJ) report untrue. Earlier today, the well-known American news media revealed that Steve Witkoff, a real estate mogul, is in talks to buy a stake in Binance.US., the American branch of the crypto exchange.
The discussions reportedly began last year after Binance sought to regain its foothold in the U.S. crypto market by reaching out to President Trump’s allies. This comes as the leading exchange had suffered regulatory pressure during Joe Biden’s administration.
Witkoff is a longtime friend of President Donald Trump, raising speculation that Trump’s family-backed project, World Liberty Financial, could be involved in the deal.
CZ Calls WSJ’s Report Misleading
In a recent X post, Changpeng “CZ” Zhao denied a recent Wall Street Journal report suggesting President Trump’s family is considering investing in Binance.US. The report also implied that Zhao sought a presidential pardon following his 2023 guilty plea for violating anti-money laundering regulations.
This incident resulted in a $4.3 billion settlement and a four-month prison sentence. In response, Zhao stated that he has had no discussions about a deal involving Binance.US with anyone, calling the initial report misleading.
He said the article was an attempt to undermine President Trump and the crypto industry. He suggested that residual forces of the last administration’s “war on crypto” are still at work.
Additionally, Binance.US executives, including interim CEO Norman Reed, were reportedly unaware of any talks regarding the Trump family’s potential investment.
Binance’s Struggles Under the Strict Regulatory Framework
Binance.US faced regulatory pressure from the U.S. Securities and Exchange Commission (SEC) when former Chair Gary Gensler was in office. The SEC called for a crackdown on the exchange, which caused many customers to leave.
Binance was forced to lay off 70% of its workforce and lose billions in revenue. The exchange also lost its ability to process U.S. dollar transactions, which further impacted its operations.
Major crypto firms like Ripple, Coinbase, and Kraken also faced regulatory scrutiny from the agency, with Ripple’s legal battle still dragging on in court. These actions created fear in the industry, forcing companies to rethink their operations in the U.S.
With President Trump back in power, Binance.US has regained its ability to handle U.S. dollar deposits and withdrawals. Meanwhile, news of the Trump family possibly investing pushed Binance’s native token, BNB, up over 5%, surpassing $600 for the first time in a week.
Binance Secures Fresh Investments
Even as the Witkoff deal to buy a stake in Binance remains uncertain, the exchange has recently secured a $2 billion investment from Abu Dhabi-based firm MGX. Many say if World Liberty Financial had acquired a stake, it would have positioned Trump’s circle at the center of one of the world’s biggest crypto exchanges.
