Representatives of US President Donald Trumps family reportedly held talks to acquire a financial stake in Binance.US, the American arm of the worlds largest cryptocurrency exchange.

According to a report by the Wall Street Journal (WSJ), which cited people familiar with the matter, the discussion began last year after Binance reached out to allies of Trump to secure a business deal with the family as part of a broader strategy to re-establish its presence in the US.

“It is unclear what form the Trump family stake would take if the deal comes together or whether it would be contingent on a pardon,” the report stated.

However, it added that one possibility under discussion is that the deal could go through World Liberty Financial, a decentralized finance (DeFi) project backed by the Trumps.

While the claims have not been confirmed, Steve Witkoff, a longtime associate of former President Trump and his top negotiator in Middle Eastern affairs, has been involved in the discussions.

CZ Pushes for Pardon

At the same time, Changpeng “CZ” Zhao, Binance’s co-founder and former CEO, is also pursuing a pardon from the Trump administration, the report said.

In November 2023, CZ pleaded to violating US anti-money laundering laws, specifically the Bank Secrecy Act. According to US prosecutors, he failed to implement an effective AML program at Binance, which allowed money to flow to terrorists, cybercriminals, and child abusers through its platform.”

As part of the plea deal, he served a four-month sentence, stepped down as CEO, paid a $50 million fine, and Binance settled for $4.3 billion. While he remains a major shareholder in Binance, he was barred from any direct role in managing or operating the company.

A Potential Return to the US?

A pardon for CZ would significantly impact Binance’s ability to operate in the US and strengthen its global business prospects. On the other hand, the Trump family’s potential stake in Binance.US could provide an opportunity to compete with Coinbase as the US crypto market experiences renewed growth amid a shifting regulatory landscape.

Binance has been working on a potential return to the US market following Trump’s election victory in November. According to reports, the company is open to striking a deal with Trump’s company to put its legal issues on the country behind.