Representatives of former President Donald Trump's family are reportedly in talks about acquiring a financial interest in the U.S. arm of cryptocurrency exchange Binance.

This news comes as Binance founder Changpeng Zhao, known as CZ, seeks a presidential pardon after spending four months in prison for breaching anti-money laundering laws.

Despite resigning as CEO after a $4.3 billion settlement with U.S. regulators in 2023, Zhao remains the largest shareholder of Binance. The negotiations, which began last year when Binance reached out to Trump's allies, are part of an effort to regain a foothold in the U.S. market, where Binance’s share has plummeted due to regulatory pressures.

The investment could be made directly by the Trump family or through World Liberty Financial, a cryptocurrency venture supported by family members that was launched in September.

Steve Witkoff, a long-time Trump associate who has served as a negotiator for his administration on various matters, is reportedly involved in these discussions, although an administration official has denied his participation.

A pardon for Zhao could potentially ease regulatory hurdles for Binance's U.S. operations and bolster its international business strategy.

Binance U.S. previously experienced a decline in market share from 27% to just over 1% due to increased scrutiny from regulators.

For the Trump family, this investment opportunity arises as the regulatory climate for cryptocurrency appears to be changing under the current administration, which is moving to ease restrictions in the sector.

These discussions also raise significant ethical concerns about conflicts of interest, considering Trump’s dual roles as a former president and a businessman.

Unlike his predecessors, Trump has kept control of his business interests without placing his assets in blind trusts, raising alarms about the mixing of personal financial interests and political authority.

Alongside these developments, the UAE-based investment fund MGX has announced a $2 billion investment for a minority stake in Binance, with leadership ties to the UAE’s ruling family.

MGX is also prominently involved in Stargate, a major artificial intelligence infrastructure initiative supported by the Trump administration.