WASHINGTON (AP) — President Donald Trump has pardoned Changpeng Zhao, the founder of Binance, which is the world’s largest cryptocurrency exchange. Zhao previously served time for not preventing criminals from using his platform for transactions linked to serious crimes, including child sexual abuse and drug trafficking.
This pardon wraps up a month-long effort by Zhao, a prominent figure in the crypto industry known as CZ. Notably, he was also among the key supporters of the Trump family’s cryptocurrency ventures.
Zhao expressed his gratitude on social media, saying, “I am deeply grateful to President Trump for today’s pardon and for supporting America’s commitment to equity, innovation, and justice.”
Zhao had reached a plea deal with the Justice Department, admitting to charges of facilitating money laundering via Binance, which resulted in a four-month prison sentence. Trump explained the pardon by mentioning that many people had recommended Zhao, stating, “A lot of people say he was innocent.” He further added that Zhao only served four months and didn’t commit a crime.
The president noted that while he hadn’t personally met Zhao, he had heard about the significant support Zhao received and claimed that Zhao was “persecuted by the Biden administration.”
Trump said, “I have granted clemency at the request of many very good people.”
This action is part of a broader trend of Trump using his executive power to grant clemency to political allies and prominent figures convicted of crimes.
White House press secretary Caroline Levitt announced the pardon, stating that the request had undergone thorough review. She emphasized that the Biden administration had been excessively punitive toward Zhao and was hostile to the crypto sector, asserting that Trump sought to rectify this.
The cryptocurrency community has long complained about the administration’s regulatory approach under Biden.
Trump’s pardon aligns with his generally hands-off stance toward the crypto industry, which has invested significantly to support his 2024 election campaign. This includes easing enforcement actions against cryptocurrency firms that were ramped up under Biden, which led to several companies shutting down.
Former federal prosecutor Mark Bini characterized Zhao’s prison sentence as for “violations of regulations, at worst charges like kissing your cousin.”
