Copyright Benzinga
The controversial pardon of Binance CEO Changpeng Zhao by President Donald Trump has reportedly been linked to a substantial boost in the market capitalization of the Trump family’s cryptocurrency venture. Task Force Tied To Trump Crypto Deal Binance formed a high-level task force following Trump’s election victory to negotiate a deal with the Trumps’ emerging cryptocurrency venture, World Liberty Financial, reported The Wall Street Journal on Wednesday. This deal was allegedly intended to secure a pardon for Zhao. Before World Liberty launched its dollar-pegged cryptocurrency, USD1, Binance assigned a team of more than a dozen engineers to develop the technology behind it, as per the publication. The exchange later facilitated a deal in which an Emirati state investor acquired a minority stake in Binance for $2 billion — a payment reportedly made using USD1. The move substantially increased World Liberty's market capitalization and expanded its influence, fueling demand for its other cryptocurrency, WLFI. The WSJ also reported that Trump envoy Steve Witkoff, co-founder of World Liberty, recently said he was confident a pardon would be granted. Binance and World Liberty did not respond to Benzinga‘s requests for comment. Binance Under Scrutiny After Zhao’s Pardon The U.S. banned Binance in 2023 for anti-money-laundering violations, accusing CEO Zhao of enabling sanctioned and criminal groups, including Iranian exchanges, Russian traffickers, and Hamas, to move billions through the platform. Zhao also pleaded guilty in the same year. Despite the pardon, Binance’s recent activities continue to invite scrutiny. Binance.US was recently accused by Sen. Chris Murphy (D-CT) of promoting Trump family-backed cryptocurrencies as a way of repaying favors following Zhao’s pardon. Binance.US defended its actions as a routine business decision, stating that it conducts comprehensive due diligence and legal review before listing any asset. The pardon of Zhao has also sparked significant debate in Washington. Senators Elizabeth Warren (D-Mass.) and Adam Schiff (D-CA) recently introduced a Senate resolution condemning Trump’s decision. WLFI Token Sees Sharp Swings Meanwhile, the Trump family-backed World Liberty Financial (WLFI) token has been making waves in the cryptocurrency market. On October 24, it outperformed major cryptocurrencies like Bitcoin (CRYPTO: BTC) and Ethereum (CRYPTO: ETH), rallying over 12% in 24 hours with a 128% increase in trading volume. However, despite brief surges, the token has struggled since its market debut in September, plunging nearly 40% from its initial trading price. As per the project’s official website, the Trump family owns about 22.5 billion WLFI tokens. Price Action: At the time of writing, WLFI was trading at $0.1393, up 7.69% in the last 24 hours, according to data from Benzinga Pro. READ NEXT: Why Is Trump Memecoin Soaring As Bitcoin, Ethereum Tumble? Image via Shutterstock
