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Changpeng Zhao, the founder of Binance, the world’s largest cryptocurrency exchange, has received a pardon from US President Donald Trump.
Zhao, widely known as “CZ,” was sentenced to four months in prison in April 2024 after pleading guilty to violating US anti-money laundering statutes.
Binance also entered a guilty plea and was subsequently mandated to pay $4.3 billion (£3.4 billion) following a US investigation that revealed its facilitation of users circumventing sanctions.
The pardon has reignited discussions surrounding the White House’s engagement with cryptocurrency, particularly as the Trump family’s investments in the industry have deepened.
White House Press Secretary Karoline Leavitt characterized Zhao’s prosecution under the Biden administration as part of a “war on cryptocurrency,” refuting critics who suggested the pardon was driven by Trump’s personal financial interests.
“This case was an example of overreach by the Biden administration,” she stated, adding that it had been “thoroughly reviewed.” “The president aims to rectify this injustice by the Biden administration and has exercised his constitutional authority accordingly.”
Binance reportedly spent nearly a year pursuing a pardon for its former chief executive, who concluded his four-month prison term in September 2024, according to a report by the WSJ on Thursday.
This effort coincided with Trump, who launched his own digital currency shortly before his inauguration in January, pledging a more accommodating stance toward the cryptocurrency sector than his predecessor.
Since then, he has eased regulations, explored the creation of a national cryptocurrency reserve, and advocated for greater accessibility for Americans to invest retirement savings in digital assets.
Zhao, who resigned as Binance’s chief executive in 2023, expressed his gratitude on social media Thursday, stating he was “deeply thankful for today’s pardon and to President Trump for upholding America’s commitment to fairness, innovation, and justice.”
While the pardon removes restrictions that previously prevented Zhao from managing financial ventures, the impact on his standing with US regulators and his ability to directly lead Binance remains uncertain.
Binance characterized the decision as “incredible news” in a statement.
The exchange, registered in the Cayman Islands, continues to be the most widely used platform globally for cryptocurrency and digital asset trading.
It has not yet addressed further inquiries regarding conflict of interest allegations.
Prior to the pardon, Zhao’s companies had partnered with firms linked to Donald Trump on new digital currency initiatives, including Dominari Holdings, where his sons serve on the board of advisers and which is based in Trump Tower.
The Wall Street Journal also previously reported that representatives of the Trump family—which has its own crypto firm World Liberty Financial—had recently held discussions with Binance.
The Trump administration previously halted a fraud case against crypto entrepreneur Justin Sun, after his investments in the Trump family’s crypto firm, World Liberty Financial.
He has also pardoned founders of the crypto exchange BitMex, who also faced charges related to money laundering, and Ross Ulbricht, founder of the Silk Road, the dark web marketplace known as a place for drug trade.
Palantir co-founder Joe Lonsdale stated on social media that while he admires Trump, he believes the president received “terrible advice” regarding the pardons.
“This action creates the impression of widespread fraud occurring around him in this domain,” he commented.
Senator Elizabeth Warren, a Democrat, strongly condemned the decision in a statement, labeling it a “form of corruption.”
When questioned about the pardon of Zhao on Thursday, Trump appeared to be unfamiliar with him.
“Are you referring to the crypto individual?” he inquired, later stating that he granted the pardon at the “request of many good individuals.”
When US authorities announced Binance’s guilty plea in 2023, they asserted that Binance and Zhao were responsible for “intentional violations” of US regulations, jeopardizing the financial system and national security.
“Binance knowingly disregarded its legal obligations in pursuit of financial gain,” stated then-Treasury Secretary Janet Yellen.
“These deliberate oversights enabled the flow of funds to terrorists, cybercriminals, and child abusers via its platform.”
Zhao resigned as Binance’s chief executive as part of the case’s resolution, stating at the time that stepping down was “the right course of action.”
“I made errors, and I must accept accountability,” he affirmed.
Reporting contributed by Bernd Debussman Jr
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