Binance and Trump Crisis in the US Senate: Here are the Details

US Democratic senators have expressed concerns over possible ties between cryptocurrency exchange Binance and digital asset ventures owned by former President Donald Trump and his family.

The letter, spearheaded by Maryland Senator Chris Van Hollen and Massachusetts Senator Elizabeth Warren, was delivered to Treasury Secretary Scott Bessent and Attorney General Pam Bondi. It was also signed by Rhode Island Senator Sheldon Whitehouse and Connecticut Senator Richard Blumenthal.

The senators’ call comes on the heels of Senate Democrats blocking a long-awaited stablecoin bill, following revelations that a Trump family-controlled company’s USD1 digital token was used to finance a $2 billion investment in Binance by Abu Dhabi-based investment firm MGX in March. The same company reportedly also contributed to a $100 billion artificial intelligence infrastructure fund that Trump announced a day after his inauguration.

Thus, indirect ties between the Trump family and Binance, which was found guilty of violating US laws, came to the fore. Binance’s former CEO Changpeng Zhao also pleaded guilty, resigned from his position and spent four months in prison in the US.

“Our concerns about Binance’s compliance obligations have been heightened by recent reports that the company has partnered with foreign investment firms using the Trump family’s stablecoin,” the senators wrote in the letter.

According to Bloomberg, an organization with ties to the Trump family, World Liberty Financial, is also reportedly considering partnership opportunities with Binance. The Wall Street Journal reported that the Trump family is in talks to acquire a stake in Binance’s U.S. subsidiary, Binance.US. The same report also claimed that Zhao has requested a presidential pardon from the Trump administration.

“The possibility that this administration would allow Binance, which has repeatedly violated federal laws and regulations, to continue operating in the United States is deeply troubling,” the senators wrote in the letter.

The letter asked the Treasury and Justice Departments to report on Binance’s compliance with the plea agreement. It also asked for clarity on the company’s plans to exit the US, the timeline for that process, and whether a possible pardon for Zhao had been discussed with any officials. It also asked whether Binance had made any contact regarding World Liberty or its plans to list a new stablecoin.

*This is not investment advice.