"Could Lead to Unprecedented Conflicts of Interest for the U.S. President"
The family of U.S. President Donald Trump is reportedly discussing plans to acquire a stake in the U.S. branch of Binance, the world's largest cryptocurrency exchange, according to the Wall Street Journal (WSJ) on the 13th (local time).
Binance, founded by former CEO Zhao Changpeng, is the world's largest Chinese-origin cryptocurrency exchange and operates a U.S. branch. Zhao Changpeng was indicted by the U.S. Department of Justice on charges including money laundering and was sentenced to four months in prison by a court in May last year. He agreed to pay a fine worth $4.3 billion (approximately 6.26 trillion KRW) to the U.S. government and resigned from his position as Binance CEO.
WSJ reported, citing sources, that these discussions began after Binance approached close associates of President Trump with business proposals following his election in last year's U.S. presidential election.
This move by Binance is analyzed as a strategy by Zhao Changpeng to obtain a pardon from the Trump administration. If Zhao receives a pardon, Binance could re-enter the U.S. market and more easily conduct international business activities.
Binance's U.S. branch saw its market share plummet from 27% to 1% following regulatory actions by the U.S. government and the indictment of Zhao Changpeng. WSJ noted that if the Trump family secures a stake in Binance, it could coincide with the U.S. administration's trend toward easing cryptocurrency regulations, potentially leading to Binance's revival.
Investment in Binance's U.S. branch is expected to be made either directly by the Trump family or through World Liberty Financial, a cryptocurrency venture launched by the Trump family in September last year.
However, concerns have been raised that this could cause unprecedented conflicts of interest. This is due to the potential clash between President Trump's authority to grant pardons and the business profits the Trump family could gain from acquiring a stake in Binance's U.S. branch.
WSJ pointed out that while previous presidents placed their assets in trusts managed by external institutions, President Trump has kept his assets under family control while pursuing business deals.
Recently, Binance secured a $2 billion investment from MGX, a state-owned investment firm of the United Arab Emirates (UAE). MGX is also participating in Stargate, a U.S. artificial intelligence (AI) infrastructure project directly announced by President Trump.
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