Summary
- The WSJ reported allegations that the Trump family is discussing acquiring stakes in Binance's US subsidiary.
- Binance is reportedly seeking to enter the US market through a negotiation deal for the pardon of former CEO Changpeng Zhao.
- There are concerns that if the Trump family acquires the stake, it could create a conflict of interest issue.
'Pardon' deal with major shareholder
Concerns over presidential conflict of interest
Allegations have emerged that the family of US President Donald Trump is discussing ways to acquire stakes in the US subsidiary of Binance, the world's largest cryptocurrency exchange. Controversy over conflicts of interest is brewing as Binance's largest shareholder is requesting a pardon from the Trump administration.
The Wall Street Journal (WSJ) reported on the 13th (local time) that "President Trump's family is discussing acquiring a stake in Binance's US subsidiary." Binance is an exchange founded by former CEO Changpeng Zhao, and has a US subsidiary. According to the WSJ, former CEO Zhao was indicted by the US Department of Justice on money laundering charges and was sentenced to 4 months in prison last May before being released. The company agreed to pay a fine of $4.3 billion to resolve the charges. A WSJ source said, "During last year's US presidential election, Binance approached President Trump's associates and proposed a (stake-related) business deal." The allegation is that Binance is trying to secure a pardon for former CEO Zhao and enter the US market through this arrangement.
If the Trump family acquires the stake, the transaction could potentially be made through 'World Liberty Financial,' a cryptocurrency venture launched by the Trump family in September last year. Allegations have also been raised that Steve Witkoff, a friend of President Trump and Middle East envoy, participated in the negotiations.
Concerns are being raised that if the stake acquisition takes place, it would create an unprecedented conflict of interest. This is because President Trump's authority over pardons would conflict with the business benefits his family could gain from acquiring stakes in Binance's US subsidiary. The WSJ pointed out, "President Trump continues to pursue business deals while keeping his assets under family control."
Kim Dong-hyun reporter 3code@hankyung.com
Korea Economic Daily
hankyung@bloomingbit.ioThe Korea Economic Daily Global is a digital media where latest news on Korean companies, industries, and financial markets.
