Binance and Trump’s Family Cryptocurrency Cooperation Under Scrutiny by U.S. Congressional Democrats
Concerns surrounding Binance’s association with the Trump family in cryptocurrency dealings have become a focal point for the Democratic Party in the U.S. Congress. Several prominent senators have officially sent letters to the Treasury Department and the Department of Justice, requesting clarification on any potential conflicts of interest between Trump and Binance, as well as inquiries into whether relevant regulatory measures are in place. This political storm in the cryptocurrency sector may impact the progress of digital asset legislation in the United States.
Democratic Senators Demand Government Clarification on Trump’s Interests with Binance
On May 10, Senators Elizabeth Warren, Chris Van Hollen, Richard Blumenthal, and four other Democratic senators sent a joint letter to Treasury Secretary Scott Bessent and Acting Attorney General Pam Bondi, directly addressing the potential financial and political entanglements between the Trump family and Binance.
In the letter, the senators wrote:
“We are increasingly concerned about whether Binance is complying with the regulatory obligations set by the U.S. government, especially given recent reports indicating that the company is collaborating with a stablecoin issued by the Trump family to complete significant transactions with foreign investment firms.”
They further added:
“In the oversight actions currently being conducted by your departments, we would like to know: Are the Treasury and Justice Departments aware of these potential collaborations? Would such collaborations violate the plea deal reached by Binance in 2023? Particularly, if Binance is using these political connections to evade regulations, it could pose significant risks to national security.”
The senators concluded by requesting formal responses from the two departments by May 21.
Binance Paid $4 Billion in Fines; Former CEO Zhao Changpeng Imprisoned for Four Months
In 2023, Binance agreed to pay a $4 billion fine for violating the U.S. Bank Secrecy Act (BSA) and failing to implement anti-money laundering (AML) regulations, becoming one of the largest penalties in cryptocurrency history. Former CEO Zhao Changpeng resigned and served four months in prison as a result. As part of the agreement, Binance committed to undergo three years of independent monitoring to ensure compliance.
Controversy Resurfaces with Collaboration on Trump’s Stablecoin
Last week, Zach Witkoff, co-founder of World Liberty Financial, announced that his company had reached a $2 billion cooperation agreement with Abu Dhabi’s investment firm MGX to utilize the stablecoin issued by World Liberty Financial for transactions with Binance.
Shockingly, according to publicly available information from World Liberty Financial, both Trump and his three sons are listed as team members for the project. Consequently, senators warned that this could enable the Trump family to exploit virtual assets to evade regulations and facilitate cash flow transfers.
Democrats Worry About Trump Using Presidential Powers to Interfere with Justice, Inquiring Whether He Will Pardon Zhao Changpeng
Another focus of the letter was the senators’ direct question to the Justice and Treasury Departments: “Is there a possibility that former Binance CEO Zhao Changpeng could receive a presidential pardon?”
This inquiry reflects the Democrats’ concerns about Trump potentially interfering with judicial processes should he return to the White House, particularly regarding individuals connected to his interests.
Binance and the Treasury Department Remain Silent; Justice Department Offers No Comments
As of the time of this report, neither Binance nor the Treasury Department had responded to the senators’ accusations. The Justice Department stated only that it “does not comment on ongoing cases or investigations.” However, the senators have made it clear that should they not receive satisfactory responses, they will pursue further investigation into this matter, including the possibility of pushing for Congressional hearings.
Political Effects of Trump’s Involvement with Cryptocurrency Expand, Legislative Gridlock in Congress
The connection between Trump and cryptocurrency has not only raised concerns among Democrats but also hindered Congressional progress on stablecoin and virtual asset regulatory legislation. Recently, a cryptocurrency hearing originally led by Republicans was derailed due to boycotts by some Democratic members.
On Thursday, the Senate also rejected moving the stablecoin bill to a vote. Although Republicans claimed the bill was complete, Democrats delayed citing “unsettled text,” with underlying motives possibly aimed at countering Trump’s cryptocurrency maneuvers.
Risk Warning
Investing in cryptocurrency carries a high level of risk, with prices subject to severe fluctuations, potentially resulting in the loss of your entire principal. Please assess risks cautiously.