Pardoned: Binance’s Changpeng Zhao by President Trump
Changpeng Zhao, the founder of Binance, the largest cryptocurrency exchange globally, has received a pardon from US President Donald Trump.
Known as “CZ,” Zhao was sentenced to four months in prison in April 2024 after admitting guilt for breaching US money laundering regulations. His company, Binance, also acknowledged its wrongdoing and was fined $4.3 billion (£3.4 billion) after a government inquiry revealed it facilitated user sanctions evasion.
This pardon has reignited discussions surrounding the White House’s support for cryptocurrencies, especially as the Trump family’s investments in the sector have increased. White House Press Secretary Karoline Leavitt denounced Zhao’s prosecution under the Biden administration as part of a “war on cryptocurrency,” contesting claims that the decision was influenced by Trump’s personal financial stakes.
In light of Trump’s pro-cryptocurrency stance, Binance spent nearly a year advocating for a pardon for Zhao, who completed his prison term in September 2024. Trump’s administration has relaxed regulations and aimed to make it easier for Americans to invest retirement funds in digital currencies.
Zhao expressed gratitude on social media, thanking President Trump for the pardon, which lifts previous restrictions on his ability to manage financial ventures. However, the implications for his status with US regulators remain unclear. Binance hailed the decision as “incredible news,” continuing to be a top platform for cryptocurrency transactions while not addressing inquiries about potential conflicts of interest.
Prior to the pardon, Zhao was involved in partnerships with firms connected to Trump in various digital-currency initiatives. The Trump administration had previously paused a fraud investigation against Justin Sun, who is linked to Trump’s crypto firm, World Liberty Financial. Trump has also pardoned other crypto figures facing similar charges.
Despite these developments, critics argue that the pardons create the impression of corruption and mismanagement. Senator Elizabeth Warren slammed the pardon as a sign of “corruption,” and Trump appeared unfamiliar with Zhao when questioned, asserting he granted the pardon at the “request of many good people.” This case highlights the intersection of politics and the burgeoning cryptocurrency industry.
