Pardon for Cryptocurrency Executive
White House press secretary Caroline Leavitt announced that President Donald Trump granted a pardon to Chao Changpeng, the founder of cryptocurrency exchange Binance and a convicted executive in the cryptocurrency sector.
“President Trump exercised his constitutional authority by pardoning Mr. Zhao, who was prosecuted by the Biden administration over the cryptocurrency war,” Leavitt stated. “In an effort to penalize the crypto industry, the Biden administration pursued Mr. Zhao despite the absence of fraud claims or identifiable victims.”
After being indicted, Mr. Zhao received a four-month prison sentence. This came after a plea agreement with the Department of Justice regarding charges related to facilitating money laundering at Binance, which he oversaw at that time.
“I am truly thankful to President Trump for today’s pardon and for supporting equity, innovation, and justice in America,” Zhao expressed in a post following the announcement. “We aim to make America the center of cryptocurrency and promote Web3 globally.”
In addition, Binance was ordered to pay substantial fines, with Mr. Zhao agreeing to a $50 million penalty while facing over $4 billion in fines and forfeitures.
Leavitt further remarked, “These actions by the Biden administration have severely harmed America’s standing as a technology and innovation leader. The Biden administration’s crypto war is now concluded.”
In November 2023, the DOJ characterized the agreement between Binance and Zhao as a “coordinated” effort involving the Treasury Department, Commodity Futures Trading Commission, and the Financial Crimes Enforcement Network. Merrick Garland, then-Attorney General, highlighted that Binance became the largest cryptocurrency exchange partly due to its own wrongdoing, leading to the largest corporate fine in U.S. history.
Janet Yellen, then-Treasury Secretary, noted that the company’s “deliberate failures allowed illicit money to navigate through its platform.”
Binance acknowledged its previous mistakes in a blog post, emphasizing a commitment to accountability.
U.S. financial exchanges, especially cryptocurrency-focused ones, are required to comply with stringent “know-your-customer” laws. Binance, which still is among the largest cryptocurrency exchanges, claims it processes over $65 billion daily.
A spokesperson for Binance stated, “We appreciate President Trump’s leadership and his dedication to making the United States the crypto capital of the world. Zhao’s vision was fundamental in establishing Binance as the largest exchange and influencing the broader crypto movement.”
Trump’s involvement with the crypto industry has grown, especially during the 2024 election cycle, including a family-connected venture launching various crypto products last year.
In a notable dinner event in May, Trump entertained top buyers of his meme coins, where a crowd gathered, spending nearly $150 million on Trump Meme Coin.
Binance has cultivated a close partnership with World Liberty Financial, which handles many of Trump’s crypto projects, reportedly generating over $4 billion for his family. Reports indicate that World Liberty’s flagship crypto coin operates on a Binance-controlled platform.
In September, Binance enlisted a new lobbyist, Charles McDowell, who has ties to Donald Trump Jr. Recently, it was revealed that McDowell’s lobbying firm had been compensated $450,000, focusing on crypto policy and what they termed “administrative relief.”
As for World Liberty and Checkmate, they have not commented on these developments.
During a White House briefing, Leavitt was asked about potential conflicts of interest surrounding Zhao’s pardon. She assured that every pardon request undergoes thorough review by the President and White House advisers.
Leavitt emphasized, “This was a clear case of excessive prosecution by the Biden administration,” adding that President Trump aimed to address these injustices through his constitutional powers.
Zhao is reportedly one of the wealthiest individuals globally, ranked 31st by the Bloomberg Billionaires Index with a net worth nearing $55 billion as of Wednesday.
Earlier in May, three Democratic senators reached out to the White House after Zhao expressed intentions for a presidential pardon on a podcast. They raised concerns about oversight, stating that such situations involving significant fines and potential investments tied to the President’s family necessitate thorough scrutiny to ensure justice operates without undue influence.
This pardon marks the latest in a series of high-profile pardons by President Trump, which include reality stars and other notable figures, as well as individuals associated with the cryptocurrency sector.
