- Democratic senators pressed Treasury and Justice to probe Trump family’s financial links with Binance.
- A $2 billion investment using a Trump-controlled stablecoin raised questions about Binance’s compliance.
- Senators demanded clarity on Binance’s plea deal enforcement and any talks about pardoning Zhao.
The US Democratic senators have ramped up their investigation into crypto deals involved with former US President Donald Trump. On May 9, Bloomberg published that several senators, such as Maryland’s Chris Van Hollen and Massachusetts’ Elizabeth Warren, officially asked the Treasury and Justice Department to investigate the Trump family’s relationships with Binance.
Their letter sounded an alarm after Abu Dhabi-headquartered MXG put in $2 billion into Binance in March through USD1, which is a stablecoin operated by an entity controlled by Trump. In this deal, which concluded this March but became public on May 1, the Trump family’s business interests were tied to Binance, the world’s largest crypto exchange, for the first time.
Binance pleaded guilty to breaching anti-money laundering regulations in 2023, which resulted in a lineup of sanctions. Its former CEO, Changpeng Zhao, stepped down and endured a four-month stint in an American maximum-security prison for the offenses.
Senators Demand Answers by May 21
The letter, which was sent Friday to Treasury Secretary Scott Bessent and Attorney General Pam Bondi, highlighted concerns about whether or not Binance is complying with legal regulations.
“Our concerns about Binance’s compliance obligations are even more pressing given recent reports that the company is using the Trump family’s stablecoin to partner with foreign investment companies,” the senators wrote.
Apart from Van Hollen and Warren, Rhode Island’s Sheldon Whitehouse and Connecticut’s Richard Blumenthal also signed the letter. The senators called for an answer by May 21 to the steps taken to implement Binance’s plea agreement and to make clear whether negotiations regarding the possible pardon for Zhao were made with federal authorities.
The timing of the letter paralleled an independent political setback. Senate Democrats just one day prior brought progress to a halt on much-discussed stablecoin legislation. One of the reasons for the impasse originated from language barring Trump and high-ranking officials from making money through crypto activity while in office.
Inquiry Expands to Trump Family’s Crypto Ventures
World Liberty Financial, an entity linked to the Trump family, was previously reported to have looked into potential business dealings with Binance. The Wall Street Journal also reported that representatives of Trump had conversations about acquiring an ownership interest in Binance.US, the American branch of the exchange. These discussions were said to have taken place at the same time Zhao was reportedly pursuing a presidential pardon.
The senators’ letter conveyed strong reservations regarding any policy of the United States permitting Binance to continue to expand in the nation. Such a scenario, they outlined, would be worrying, especially in light of Binance’s acknowledged compliance lapses and past contempt for regulations.
They also urged it to provide an update regarding Binance’s scheduled departure from US markets, asking for an explicit timeline and additional data regarding Binance’s communication with Treasury or Justice Department officials regarding World Liberty and new stablecoin listings.
In spite of being stalled last Thursday, legislators signaled that there could still be a legislative compromise in the weeks ahead. The delay resulted from incomplete bill text and still-unresolved provisions that would bar Trump and other high-ranking officials from profits tied to cryptocurrencies while serving in office.
