Trump Grants Pardon to Binance’s Founder
President Donald Trump has issued a pardon for Changpeng “CZ” Zhao, the founder of Binance, a prominent cryptocurrency exchange worldwide.
Zhao had previously pled guilty in 2023 to violating the Bank Secrecy Act by not keeping appropriate safeguards against money laundering. Additionally, he settled a Justice Department investigation by paying a hefty sum of $4 billion. This investigation was overseen by former Attorney General Merrick Garland, with coordination from then-Treasury Secretary Janet Yellen through the Financial Crimes Division.
Following his four-month sentence, Zhao is expected to be released from federal prison in September 2024.
The cryptocurrency realm seems to be getting a fresh breath of life under the current administration, which aims to position the United States as the global hub for crypto.
While the Biden administration’s Justice Department claimed Zhao broke the law, some think the case is reflective of a broader conflict regarding cryptocurrency, suggesting that other financial leaders might not have faced prison terms for similar issues.
There had been rumors circulating about a potential pardon for Zhao, and he himself acknowledged these talks. He noted, “Thank you, Charles. That’s great news if true. Just to clarify, there was no ‘fraud’ charge. I think the previous administration’s Department of Justice tried but couldn’t find anything. I admitted not one violation of the Bank Secrecy Act (BSA).”
Although Zhao still holds a significant stake in Binance, it’s uncertain if he will rejoin the company.
On the crypto front, things appear to be on the upswing this year. Bitcoin recently hit a record high of $126,000, though it has dipped to around $111,000 since then. Even so, it’s up by over 19% this year.
In addition, the Winklevoss Twins have seen success with their exchanges, Burish and Gemini, which went public this year alongside Coinbase.
Overall, there seem to be increasing signs of support and demand for the cryptocurrency industry moving forward.
