CZ denies asking the president for a pardon amid reports Trump family held talks about taking a stake in Binance

Binance founder and former CEO Changpeng Zhao has denied reports from The Wall Street Journal, which cited sources familiar with the matter, that he had been pushing the Trump administration for a pardon.

"Sorry to disappoint. The WSJ article got the facts wrong," Zhao posted to X, alleging it was an "attack" on the president and crypto. "No felon would mind a pardon, especially being the only one in U.S. history who was ever sentenced to prison for a single BSA charge. I have had no discussions of a Binance US deal with … well, anyone."

The WSJ also reported earlier on Thursday that representatives of the Trump family held talks to take a financial stake in the U.S. arm of the crypto exchange, citing the same sources.

According to the outlet, talks began after Binance reached out to Trump allies last year to strike a deal as part of a plan to revive the crypto exchange's diminished position in the U.S. market. Last month, Binance.US restored fiat deposits and withdrawals for the first time since 2023, when the Securities and Exchange Commission sued the firm, alleging violations of securities laws, leading banking partners to cut ties with the exchange.

Zhao did not further address claims regarding talks over Trump's family taking a stake in the crypto exchange. However, he is no longer involved in Binance's operations since stepping down as CEO as part of a settlement between Binance and U.S. authorities in November 2023.

The World Liberty Financial connection

The WSJ said 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 for Zhao. Possibilities reportedly include a direct stake or a deal being made by the Trump family-backed DeFi project World Liberty Financial, the outlet claimed.

In a separate report on Friday, Bloomberg said World Liberty Financial had discussed working with Binance, citing four people with knowledge of the talks, possibly including a new stablecoin.

The people said it was unclear what stage the discussions had reached or whether they would ultimately result in any deal or venture. The Trump's receive 75% of World Liberty Financial's net revenue.

Zhao met with Trump ally and Middle East envoy Steve Witkoff in Abu Dhabi at the Bitcoin MENA 2024 conference in December, two of the people said. Witkoff's sons Alex and Zach are also co-founders of World Liberty Financial, and talks between the two companies have continued since, the sources claimed.

However, Zhao subsequently denied Bloomberg's report too. "I/Binance have no business deals with WLF or the people mentioned in their article," he posted on X. "We also did not buy any of the WLF coins."

Zhao, also widely known by his initials CZ, was sentenced to four months in prison last April after he pleaded guilty to failing to maintain an "effective anti-money laundering program." Zhao was given a $50 million fine, and Binance agreed to pay $4.3 billion in one of the largest corporate settlements in history.

Zhao was released from prison in September and remains Binance's largest shareholder.

The Block reached out to the White House and Binance for comment.

Pro-crypto President

President Donald Trump has increased his involvement in the crypto industry significantly in recent months, off the back of a very pro-crypto election campaign. Beyond his connection to World Liberty Financial, President Trump has launched a series of NFT collections, as well as an official memecoin on the Solana blockchain, sparking some controversy.

Trump also signed an executive order on March 6 to create a U.S. Strategic Bitcoin Reserve, established from the approximately 200,000 BTC ($17 billion) already owned by the federal government that was forfeited as part of criminal or civil proceedings, minus those that still need to be returned to victims of crime.

Additionally, Trump directed Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick to develop budget-neutral strategies for acquiring additional bitcoin, provided they have no incremental costs to American taxpayers.

The executive order also established a U.S. Digital Asset Stockpile consisting of cryptocurrencies other than bitcoin. However, the government will not acquire additional assets for the stockpile beyond those obtained through forfeiture proceedings.

Updated throughout to reflect Changpeng Zhao's response to the earlier WSJ article and reports from Bloomberg on the World Liberty Financial connection.