How Crypto Has Earned the Trump Family Billions

Summary

WSJ What’s News: How Crypto Has Earned the Trump Family Billions

Episode Release Date: August 13, 2025
Host: Azhar Sukri
Reporters: Angus Berwick and Patricia Kausman

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1. The Trump Family's Cryptocurrency Empire

The Trump family's venture into cryptocurrency has emerged as a significant financial success, generating approximately $4.5 billion since the election—surpassing other segments of President Trump's business interests.

Key Partnership with PancakeSwap:
A pivotal factor in this success is the strategic partnership with PancakeSwap, an online trading platform facilitating the buying and selling of cryptocurrencies. As Patricia Kausman explains:

"World Liberty Financial created a cryptocurrency called USD1, pegged to the US dollar. Their partnership with PancakeSwap in June incentivized users to trade USD1 for other tokens, significantly boosting USD1's trading volume."
[01:17]

Financial Mechanics:
World Liberty Financial profits by reinvesting the circulation of USD1 into government bonds and money market funds. With over $2 billion of USD1 in circulation, the venture is projected to earn around $80 million annually based on current interest rates.

2. Binance Founder’s Controversial Ties

The Trump family's crypto success is intertwined with Binance, the world's largest centralized crypto exchange. Patricia Kausman provides insight into this connection:

"PancakeSwap, created by Binance, has been instrumental in driving USD1 trading volumes. Concurrently, Binance's founder, CZ, is seeking a pardon from President Trump following legal troubles related to anti-money laundering controls."
[03:00]

Legal Troubles and Implications:
In 2023, Binance faced scrutiny for lax anti-money laundering practices, resulting in CZ’s four-month imprisonment in the US and a hefty $4.3 billion fine for the exchange. Despite these issues, CZ appears to downplay any connection between his legal battles and his seeking of a presidential pardon.

3. White House Response and Conflict of Interest Allegations

Addressing the allegations of conflicts of interest surrounding the Trump family's crypto activities, the White House maintained a firm stance:

"The media continues to try to create conflicts of interest where they don't exist. Neither the president nor his family have ever engaged or will ever engage in conflicts of interest."
— White House Press Secretary, [04:02]

This statement underscores the administration's position against perceived media attacks, emphasizing a denial of any wrongdoing related to their business ventures.

4. Federal Takeover of Washington D.C.'s Police Department

In a significant move, over 800 National Guard troops have been deployed to Washington D.C., marking a substantial shift in the city's security landscape. The Trump administration has placed the city's police department under federal control, citing a focus on enhancing operational efficiency and reducing crime.

Details from Press Secretary Caroline Levitt:

"Within these 30 days, our entire focus is making sure that this is the most efficient operation possible and that we are removing as many criminals from the streets and we are cleaning up DC as best as we can."
[05:37]

Potential Extension:
Federal control may extend beyond the initial 30-day period, pending approval from both the House and Senate. Current statistics indicate a 35% drop in violent crime in Washington D.C. over the past year, the lowest in over three decades.

5. U.S. State Department's Altered Human Rights Report

The Trump administration's priorities have significantly influenced the recently released human rights report by the State Department. The revised document has faced criticism for its perceived downplaying of issues such as LGBTQ rights and government corruption, particularly in favored nations like El Salvador.

Impact of Political Appointees:
Current and former officials have noted that political appointees have reshaped the report’s focus, enhancing criticisms of European allies regarding freedom of expression while reducing scrutiny on domestic issues within allied nations.

"The report addresses abuses that had not previously been covered well, as Canada tries to negotiate a new trade deal and security relationship with the U.S."
[05:37]

6. Canada-U.S. Trade War: Alcohol and Canola at the Forefront

The ongoing trade tensions between Canada and the U.S. have seen the latest battlegrounds in alcohol and canola exports.

A. Alcohol Boycotts Impacting U.S. Distillers

Canada has taken a strong stance against U.S. alcohol imports, leading to significant financial repercussions for American distillers who rely on the Canadian market.

Key Points:

• Eight of Canada's Ten Provinces have ceased purchasing U.S. alcohol, severely impacting sales.
• Economic Impact:
  • Ontario, Canada's largest province, saw sales of U.S. wines and spirits drop by approximately $700 million last year.
  • Industry estimates indicate a 62% reduction in U.S. distilled spirits exports in the first half of the year compared to the previous year.

Quotes from Vipal Monga:

"Eight of the country's 10 provinces have stopped buying US alcohol, which is really hurting many US distillers who depend on Canada as their largest export market."
[08:07]

"Ontario sold roughly $700 million worth of wine spirits last year, but a decree by the provincial government in March forced government-owned liquor stores to remove bottles of Jack Daniels, Maker's Mark, and Robert Mondavi cabernets from their shelves."
[08:27]

B. Canadian Countermeasures and Efforts to Restructure Trade Relations

In response, certain Canadian provinces have adjusted their stance in an attempt to ease trade tensions.

Notable Developments:

• Alberta, an oil-rich province, resumed selling U.S. alcohol and wine in June to foster better trade relations.
• Post-boycott, there has been a 30% surge in U.S. wine sales and a 7% increase in U.S. whiskey sales, driven by Canadian consumers looking to stock up.

Additional Insights:

Prime Minister Mark Carney highlighted that approximately 85% of Canada’s trade with the U.S. remains tariff-free under the USMCA trade agreement, despite ongoing disputes over specific commodities.

"Canadians are using booze as the latest weapon in their trade war with the U.S., costing American distillers and wineries millions in lost sales."
[08:51]

Conclusion

The episode of WSJ What’s News delves into the multifaceted impacts of the Trump family's ventures into cryptocurrency, their intricate ties with major crypto exchanges, and the broader geopolitical implications involving trade wars and federal interventions. From lucrative crypto partnerships to significant shifts in international trade relations, the story encapsulates the dynamic interplay between business interests and political maneuvers shaping today's global landscape.

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This summary is based on the podcast transcript provided and aims to encapsulate all key discussions, insights, and conclusions presented during the episode.

Transcript

[Azhar Sukri]

Hundreds of National Guard troops begin patrolling Washington, D.C. plus, we look at the recipe behind the Trump family's cryptocurrency haul and how booze has become a new front in the U.S. canada trade war.

[Vipal Monga]

Eight of the country's 10 provinces have stopped buying U.S. alcohol, which is really hurting many U.S. distillers who depend on Canada as their largest export market.

[Azhar Sukri]

It's Wednesday, August 13th. I'm Azhar Sucri for the Wall Street. Here is the AM edition of what's news, the top headlines and business stories moving your world today. The Trump family's crypto venture has generated more wealth since the election, some $4.5 billion than any other part of the president's business empire. A major reason for the success is a partnership with trading platform PancakeSwap. It's quietly administered by the world's largest crypto, Exchan Binance, whose founder is seeking a pardon from President Trump. So write journal crypto reporters Angus Berwick and Patricia Kausman. Patricia, this sounds like a lot of money. Tell us about this partnership.

[Patricia Kausman]

Yeah, so thinkcake Swap is an online trading platform basically where people can buy and sell cryptocurrencies. And we have a company called World Liberty Financial, which is the crypto venture of the Trump family. This company created a cryptocurrency called USD1, which is basically pegged with the US dollar. What world Liberty did and Pancakeswap did were they announced a partnership to boost USD1's adoption, and that happened in June. And that partnership basically created incentives for people on the Pancake swap platform to trade USD1 for other tokens. Those included some projects that said they were created specific specifically with the intent of helping to increase the use of USD1. So the result basically is that the trading volume of USD 1 skyrocketed with this announcement and this partnership. And the way World Liberty makes money out of the USD one is that it basically invests the money back in the coin in things like government bonds and money market funds. So the more USD one is in circulation, the more it can invest and actually make money. There are more than $2 billion of SD1 in circulation, and based on our calculations, it can earn around $80 million a year based on the current interest rates.

[Azhar Sukri]

Okay, so that's how this partnership is generating money for the Trump family's business. And then you write that the founder of crypto exchange Binance is also involved.

[Patricia Kausman]

So according to our reporting, PancakeSwap was created by Binance, which is the world's largest centralized crypto exchange. A few years ago so we have here pancake Swap helping drive US D1 trading volumes. And in parallel, we have reported and it's been public that Binance's founder CZ is seeking a pardon from President Trump. It's important to note that CZ has kind of dismissed the connections between deals and a pardon. Binance got into trouble back in 2023 for basically very relaxed or almost non existent anti money laundering controls at the exchange. And As a result, CZ actually spent four months in prison in the US last year and Binance agreed to pay a $4.3 billion fine to settle the case.

[Azhar Sukri]

And what has the White House had to say about all of this?

[Patricia Kausman]

So the White House press secretary told us that the media continues to try to create conflicts of interest where they don't exist and said that neither the president nor his family have ever engaged or will ever engage in conflicts of interest.

[Azhar Sukri]

Patricia Kausman is a senior reporter for the Wall Street Journal. Patricia, thank you for bringing us this story.

[Patricia Kausman]

Thank you.

[Azhar Sukri]

Coming up, find out how Canadians are using booze as the latest weapon in their trade war with the U.S. that story and more after the break. Washington, D.C. is looking much different this week with more than 800 National Guard troops now patrolling the city. Speaking to reporters, White House Press Secretary Secretary Caroline Levitt detailed a range of arrests that had been made since President Trump placed the city's police department under federal control, including charges of homicide, gun and drug crimes. And Levitt said federal control of DC's police department could last longer than 30 days.

[Patricia Kausman]

As for the timing, we will reevaluate and reassess and make further decisions after this 30 day period is up. But within these 30 days, our entire focus is making sure that this is the most efficient operation possible and that we are removing as many criminals from the streets and we are cleaning up DC as best as we can.

[Azhar Sukri]

The White House would need approval from both the House and Senate in order to extend the takeover of the police department. Justice Department data shows that violent crime in Washington was down 35% last year from 2023, the lowest in more than 30 years. The state Department has released a long delayed human rights report highlighting the Trump administration's foreign policy priorities. It escalates criticism of US Allies in Europe for perceived restrictions on freedom of expression while cutting sections on LGBTQ rights and government corruption. Current and former officials say political appointees at the State Department changed how the report has traditionally been written and edited. This includes the administration's views on countries including Brazil and South Africa, while tempering criticisms of El Salvador, a key partner in Trump's crackdown on illegal immigration, State Department spokeswoman Tammy Bruce said yesterday the report, quote, addresses abuses that had not previously been covered well, as Canada tries to negotiate a new trade deal and security relationship with the U.S. ottawa's trade conflict with China is escalating. Chinese authorities have said they intend to impose a hefty tariff of about 76% on shipments of canola a that triggered a sharp drop in canola futures. Canola, also known as rapeseed, represents the biggest cash crop for Canadian farmers. China said A probe by the country's Commerce Department concluded that a surge of Canadian canola shipments had harmed China's domestic rapeseed business. Canadian officials rejected China's allegation that their farmers dump canola onto the Chinese market and were disappointed by the decision, adding that they are prepared to talk with their counterparts in Beijing to address trade concerns. Meanwhile, Canadians have found an easy target to hit back at President Trump's trade tariffs. American Booze Canada first started pulling US Made alcohol from shelves earlier this year when Trump first applied a 25% tariff on Canadian goods that aren't compliant with the USMCA trade pact. Journal reporter Vipal Monga says the boycott is costing American distillers and Viney millions in lost sales.

[Vipal Monga]

Eight of the country's 10 provinces have stopped buying US alcohol, which is really hurting many US distillers who depend on Canada as their largest export market. Ontario, home to Canada's largest city, Toronto, sold roughly $700 million worth of wine spirits last year. But a decree by the provincial government in March forced government owned liquor stores to remove bottles of Jack Daniels, Maker's Mark and Robert Mondavi cabernets from their shelves, the Distilled Spirits Council and industry group estimated exports of US made distilled spirits fell about 62% in the first half of the year compared with last year.

[Azhar Sukri]

But Vipal says that while many Canadians are boycotting U.S. alcohol out of a sense of patriotism, others are happy to stock up.

[Vipal Monga]

Alberta, the oil rich western province, started selling US Alcohol and wine in June in a bid to improve the tone in ongoing trade talks between Canada and the U.S. one retailer there told me that since a boycott was lifted, US wine have surged 30% while US whiskey sales are up 7%. Demand is coming from Canadians in other provinces who want to stock up on bourbon and their favourite wines.

[Azhar Sukri]

Canadian goods not compliant with the USMCA are currently subject to 35% tariffs. While providing few details on where the trade impasse is at. Prime Minister Mark Carney has consistently pointed out that about 85% of trade with the US is tariff free under that trade deal. And that's it for what's news for this week, Wednesday morning. Today's show was produced by Daniel Bark. Our supervising producer is Sandra Koff. I'm Azhar Sukri for the Wall Street Journal. We'll be back tonight with a new show. Until then, thanks for listening.