Changpeng Zhao’s Legal Troubles and Presidential Pardon Efforts

Changpeng Zhao, often referred to as CZ, is recognized as one of the wealthiest individuals in the cryptocurrency world. He gained significant prominence after founding a cryptocurrency exchange in 2017, which went on to become the largest in the globe. Zhao held the position of CEO until 2023.

While Zhao is celebrated as a leading figure in crypto, he also has a criminal record. It seems that he is currently seeking a presidential pardon as he and Binance aim to re-enter the U.S. market.

In November 2023, Zhao and Binance admitted to violating the Bank Secrecy Act. Reports indicated that Binance failed to comply with U.S. sanctions, allowing entities like Hamas, Hezbollah, al-Qaeda, and ISIS to operate on their platforms in sanctioned regions, including North Korea and Syria. Treasury Secretary Janet Yellen criticized Binance, stating that the company ignored its responsibilities in pursuit of profit, facilitating financial activity for various criminal organizations.

As a result, Binance was fined over $4 billion, marking one of the largest penalties in U.S. corporate history. Zhao agreed to step down as CEO and was ordered to pay $50 million, serving four months in prison, which he completed in September 2024.

By March 2025, reports emerged that Zhao was pursuing a pardon from the Trump administration and had even reached out to the Trump family regarding potential business opportunities. Zhao publicly dismissed any direct connections, noting that felons don’t usually find it hard to ask for pardons.

In early May, Zhao confirmed during a podcast that he had submitted an official request for a pardon. He stated that he did not have a personal relationship with Trump and that Binance could not donate to the campaign as a foreign entity. Still, he expressed his hope for a White House pardon, saying he wouldn’t mind at all.

However, there seems to be more to Zhao’s lobbying efforts than he admits. Public disclosures reveal that both Zhao and Binance engaged a law firm, BakerHostetler, to lobby for the pardon, with Teresa Goody Guillén leading the efforts. The firm has connections with World Liberty Financial, a crypto company linked to the Trump family. Goody Guillén did not respond to inquiries regarding the situation.

The New York Times reported that BakerHostetler is collaborating with Checkmate Government Relations, a lobbying firm associated with Donald Trump Jr.’s close friend, Chess McDowell. It’s unclear how closely Checkmate is working with BakerHostetler, as McDowell did not provide any clarification when contacted.

Additionally, Binance appears to be attempting to curry favor with Trump through other, less visible methods. In May, a state-owned investment firm from the UAE made a $2 billion investment in Binance, involving USD1, a stablecoin developed by World Liberty Financial. This investment positioned USD1 favorably in the competitive stablecoin market. Binance reportedly holds a significant portion of the USD1 reserves, which might yield substantial profits for both Binance and the Trump family. Reports show that Binance played a role in the development and transactions of this stablecoin.

Experts suggest that granting Zhao a pardon would significantly deviate from standard presidential practices. The president’s amnesty decisions often raise eyebrows, especially those involving serious accusations like corruption and legal violations.

President Joe Biden caught attention during his tenure for pardoning his son Hunter and preemptively forgiving other individuals. Trump continued this trend upon taking office, issuing pardons for those involved in the January 6 insurrection. Zhao’s request for amnesty fits into a controversial narrative surrounding pardons granted in recent years.

As of now, the White House has not commented on the situation.

Insights from experts indicate that Trump’s approach to pardoning stands apart from historical norms. The president has significant leeway in granting pardons, which diminishes checks on his power, particularly in his second term when he faces less electoral accountability. With pardoning authority nearly unfettered, experts caution that there is little check on the potential misuse of this power.