Your Support Fuels Our Reporting
From significant issues like reproductive rights and climate change to the influence of major technology firms, The Independent is actively engaged in reporting as events unfold. Whether it involves delving into the financial aspects of Elon Musk’s pro-Trump PAC or producing our latest documentary, ‘The A Word’, which highlights American women’s struggles for reproductive rights, we emphasize the importance of distinguishing facts from narratives. At this pivotal time in U.S. history, we require journalists on the ground to provide balanced perspectives. Your contributions enable us to continue sending reporters to cover both sides of every story. The Independent is trusted by a diverse political audience across the nation, and unlike many other reputable news organizations, we do not restrict access to our reporting and analysis through paywalls. We believe that high-quality journalism should be accessible to all, funded by those who can afford it. Your support truly makes a significant impact.
Binance’s Role in Trump Family Cryptocurrency Venture
A recent report reveals that Binance, a leading cryptocurrency exchange, played a crucial role in propelling the Trump family’s cryptocurrency initiative to significant financial success just before Donald Trump issued a pardon for its co-founder, Changpeng Zhao. Zhao, commonly referred to as “CZ,” was pardoned by Trump last week, with the administration claiming he was targeted by the Biden Administration’s stance against cryptocurrencies. In 2023, Zhao had admitted guilt to charges related to enabling money laundering and agreed to step down as Binance’s CEO as part of a $4.3 billion settlement with the Justice Department, serving four months in prison as a result.
Following Trump’s election win in 2024, which he has promoted as a victory for cryptocurrency supporters, Zhao’s company recognized a potential opportunity. According to the Wall Street Journal, Binance established a specialized task force to negotiate a partnership with the Trump-linked cryptocurrency venture, World Liberty Financial, and embarked on a prolonged effort for clemency.
Trump Family’s Stake in World Liberty
Members of the Trump family own a controlling stake in World Liberty through an overarching company, holding more than 50% of its shares. The recent introduction of World Liberty’s stablecoin—a cryptocurrency engineered to maintain a fixed value equivalent to the U.S. dollar—witnessed a dramatic increase in its valuation, soaring from $127 million to over $2.1 billion this spring, largely due to Binance’s involvement. The infrastructure supporting World Liberty’s stablecoin, known as USD1, was developed by Binance. Shortly after USD1’s launch in March, an Emirati state-funded entity, MGX, invested $2 billion into Zhao’s company, which reportedly positioned World Liberty to potentially earn tens of millions in interest.
World Liberty clarified to the Wall Street Journal that Binance did not facilitate the MGX transaction, while a representative for Binance stated that Zhao did not play a role in establishing the connection between MGX and the Trump family’s crypto enterprise. With Trump’s pardon of Zhao now in effect, Binance, the largest cryptocurrency trading platform globally, is poised to resume operations in the U.S. following a ban imposed in 2023. World Liberty denied that the pardon was ever a topic of discussion, with its legal representative asserting that they had no influence over Zhao’s pardon. A spokesperson for World Liberty remarked, “Everyone who has suffered from Joe Biden’s lawfare has justly received pardons.”
Concerns Surrounding the Pardon
Trump commented that the pardon was granted “at the request of many good people,” though some within his administration expressed concerns about the implications of this decision. White House press secretary Karoline Leavitt reassured that neither Trump nor his family has engaged in any conflicts of interest. Zhao’s release from prison occurred in September. Following Trump’s 2024 electoral triumph, Zhao and his Binance co-founder, Yi He, who is also his partner, reportedly mingled with prominent figures within Trump’s circle.
In December, the couple entertained guests on their yacht during the Grand Prix in Abu Dhabi, including Errol Musk, Elon Musk’s father, and Bilal bin Saqib, a tech entrepreneur who later became an advisor to World Liberty. Reports also indicate that Zhao socialized with Eric Trump and Steve Witkoff, who is currently Trump’s special envoy, during a bitcoin conference in Abu Dhabi. Both World Liberty and a Trump administration official denied that any of these individuals met during the conference.
A few months later, in April, Zhao met with Zack Witkoff, Steve Witkoff’s son, along with Saqib and other stakeholders associated with MGX at a beachfront venue in St. Regis. Zhao’s guilty plea was part of a multi-billion-dollar settlement with the Justice Department, which had been investigating Binance for breaching the Bank Secrecy Act, failing to register as a money transmission business, and violating the International Emergency Economic Powers Act.
Criticism from Political Figures
Federal prosecutors alleged that Binance overlooked its legal responsibilities, enabling criminals and abusers to use its platform for illicit financial transactions. Zhao admitted guilt for not maintaining an effective anti-money laundering program, contravening the Bank Secrecy Act, and subsequently resigned. Democratic Senator Elizabeth Warren criticized Trump’s decision to pardon Zhao, stating, “First, Changpeng Zhao pleaded guilty to a criminal money laundering charge. Then he supported one of Donald Trump’s crypto ventures and pushed for a pardon.” She emphasized the need for Congress to intervene against such corruption in upcoming market structure legislation, labeling it a blatant misuse of power and a mockery of justice.
Democratic Representative Jerry Nadler from New York echoed this sentiment, stating, “Trump is essentially selling pardons to those who can benefit him personally. It’s an egregious misuse of power.” Even some of Trump’s supporters expressed disapproval regarding Zhao’s pardon. Joe Lonsdale, co-founder of Palantir Technologies, remarked that Trump has received poor counsel, suggesting that the situation gives the impression of rampant fraud surrounding him. Laura Loomer, a close associate of Trump, also criticized the decision before it was made public, asserting that individuals seeking Emirati citizenship often do so to evade legal repercussions for crimes. In response, Zhao clarified that he no longer possesses Chinese citizenship. Binance representatives contended that Zhao’s actions would not have been prosecutable under the Trump administration, according to the Wall Street Journal.
