US President Donald Trump has issued a pardon to Chao Changpeng, the founder of the cryptocurrency exchange Binance, who faced convictions related to money laundering laws.
In a statement released Thursday, White House press secretary Caroline Leavitt noted that President Trump “exercised his constitutional authority” to pardon Mr. Zhao, who had been prosecuted by the current Biden administration during the ongoing regulatory scrutiny of the crypto industry.
Zhao expressed his gratitude via a post on social media platform X, stating, “I am deeply grateful to President Trump for today’s pardon and for supporting America’s commitment to equity, innovation, and justice.” He went on to highlight aspirations for the U.S. to become the “crypto capital.”
Chao, a significant figure in the cryptocurrency landscape, stepped down as Binance CEO in 2023 after the company was found guilty of not maintaining an adequate anti-money laundering program, resulting in a $4.3 million fine.
Originally a Chinese-born Canadian citizen, Chao served a four-month prison sentence last year for breaching the Bank Secrecy Act. He was notably the first individual to be sentenced under these laws, which mandate U.S. financial institutions to confirm the identities of their customers and monitor transactions for any suspicious activity. Prosecutors highlighted that Mr. Zhao’s violations were particularly egregious.
The U.S. Constitution grants the president significant power to issue pardons and modify sentences. Typically, such actions happen at the close of a presidential term, but there are no strict rules governing the timing of these decisions.
In a May podcast, Zhao mentioned he had sought a pardon from the Trump administration, clarifying that he had never communicated directly with the president.
This pardon marks yet another instance of President Trump easing the convictions of individuals within the cryptocurrency space, including various entrepreneurs and executives caught up in white-collar crimes.
While specifics of the pardon are still pending, it might allow Chao to re-enter the business landscape he helped create back in 2017. Additionally, it could provide Binance with a chance to grow within the U.S. market as the cryptocurrency industry experiences a resurgence under Trump’s leadership.
The former president has gained backing from the crypto community for a potential second term, with commitments to overturn former President Biden’s policies that were critical of crypto firms for fraud and other financial violations.
Earlier this year, Trump pardoned three co-founders of BitMEX, who admitted guilt in 2022 for not adhering to anti-money laundering regulations. He has also granted clemency to the founder of the electric truck company Nikola, who was found guilty of fraud, and reduced sentences for executives from the now-defunct Ozzy Media.
In January, Trump pardoned Ross Ulbricht, sentenced to life for managing the Silk Road, an illicit online marketplace, which still resonates with many in the cryptocurrency community.
