Binance’s alleged ties to a Trump-backed crypto venture are igniting Washington, as Senate Democrats demand urgent answers on regulatory rollbacks and covert Treasury dealings.
Treasury Pressured to Expose Binance Ties to Trump’s Crypto Venture
The U.S. Senate Committee on Banking, Housing, and Urban Affairs announced on May 9 that five Democratic Senators had sent a letter to Treasury Secretary Scott Bessent and Attorney General Pam Bondi demanding answers about federal oversight of Binance following the exchange’s 2023 guilty plea and settlement.
Led by Senators Chris Van Hollen, Elizabeth Warren, Richard Blumenthal, Sheldon Whitehouse, and Mazie Hirono, the letter scrutinizes alleged recent meetings between Binance executives and administration officials, expressing alarm over potential backtracking on legally mandated compliance obligations. The inquiry also highlights concerns over possible links between the cryptocurrency exchange and the Trump family’s new crypto venture, World Liberty Financial.
The lawmakers opened their letter with a direct expression of concern:
We are writing with concerns about recent reports of meetings between Binance executives and officials from the Treasury Department.
They continued: “According to the Wall Street Journal, the discussions concerned the company’s compliance obligations set in place following Binance’s 2023 guilty plea and settlement in federal court on charges of money laundering, operating an unlicensed money transmitting business, violating U.S. sanctions laws, and failing to prevent and report suspicious transactions with terrorist groups, including Hamas and ISIS. 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 voiced further alarm about reported efforts by Binance to reduce regulatory scrutiny:
As the Administration loosens oversight on an industry where bad actors have violated money laundering and sanctions law, it is not surprising that Binance, which has admitted to prioritizing its own growth and profits over compliance with U.S. law, would seek to roll back the oversight required by its settlement.
The 2023 plea agreement requires Binance to exit the U.S. market and submit to multi-year supervision by independent monitors selected by the Financial Crimes Enforcement Network and the Department of Justice. Former CEO Changpeng Zhao (CZ) also pleaded guilty and received a four-month prison sentence.
Concerns have intensified with recent reports that the Trump family is financially intertwined with Binance’s operations. The Senators cited information suggesting that Binance may be leveraging the Trump-backed stablecoin USD1 to facilitate new partnerships with foreign investment firms.
In light of these developments, the Senators demanded details about the Treasury and Department of Justice’s actions to uphold Binance’s settlement terms, the status of its U.S. exit, and any communications involving a potential pardon for Zhao or discussions about USD1. While critics of crypto argue the administration is undermining enforcement, others warn that overly aggressive regulation risks stifling American leadership in blockchain innovation.
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XRP Key in SEC Filing as Webus Builds Treasury Engine
XRP roars into the institutional spotlight as Webus unveils a $300 million digital asset framework, unlocking next-level treasury infrastructure with regulatory clarity and elite execution.
Webus Files With SEC to Establish XRP Treasury Engine
Webus International Ltd. (Nasdaq: WETO) disclosed key details of its Delegated Digital-Asset Management Agreement with Samara Alpha Management LLC through a Form 6-K filing submitted to the U.S. Securities and Exchange Commission (SEC) on June 3. The SEC filing also includes the company’s announcements regarding its XRP treasury plan on May 29 and June 2.
The agreement, executed on May 28, grants Samara Alpha discretionary authority over a potential $300 million portfolio of digital assets, principally XRP, pending activation upon the transfer of assets to designated custody wallets. This filing marks a significant step in Webus’s strategic positioning around digital asset treasury infrastructure while affirming regulatory transparency. The company emphasized the institutional rigor of the partnership, stating:
This strategic framework … is designed to provide Webus with institutional-grade infrastructure and expertise for potential future digital asset treasury operations, specifically focused on XRP management.
Webus confirmed that no funds or assets have yet been transferred, and that Samara Alpha’s obligations begin only upon asset delivery. Critically, the agreement also limits exposure: “The aggregate value of the managed assets under this Agreement shall not exceed US$300,000,000 unless otherwise agreed in writing by both parties.”
Custody arrangements will be executed via multi-signature wallets, with Webus retaining key access and Samara Alpha lacking unilateral withdrawal authority. Fee terms include a 2% annual management fee, a 20% performance fee on net profits above a high-water mark, and an 80/20 staking reward split favoring Webus. The contract, governed by New York law, is set for a three-year term following activation and allows termination with cause or notice. By structuring this digital asset initiative through an SEC-registered investment adviser and codifying protections such as custody controls and risk-defined discretion, Webus signals its intention to cautiously enter the digital asset space without compromising institutional governance.
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