Trump Pardons Binance Founder Changpeng Zhao
In a significant move, President Donald Trump has granted a pardon to Changpeng “CZ” Zhao, the founder of the cryptocurrency exchange Binance.
White House Press Secretary Caroline Levitt commented on Thursday, stating that President Trump “exercised his constitutional authority by pardoning Mr. Zhao, who was prosecuted by the Biden administration in the crypto war.”
Levitt continued, “The Biden administration, in its desire to punish the crypto industry, pursued Mr. Zhao despite no allegations of fraud or identifiable victims. The Biden administration’s crypto war is over.”
This pardon absolves Zhao of a 2023 conviction for violating the Bank Secrecy Act and for failing to implement anti-money laundering controls in overseas operations. At the time, prosecutors alleged that Binance had become a focal point for illicit transactions, enabling criminal organizations to launder billions.
To settle federal charges, Binance had previously paid a hefty fine of $4.3 billion and was later barred from conducting business in the United States. Zhao resigned as CEO after spending four months in prison.
Following the pardon, Zhao expressed his gratitude, stating, “We are deeply grateful to President Trump for today’s pardon and for supporting America’s commitment to equity, innovation, and justice.” He added, “We will do everything in our power to make America the crypto capital.”
In a follow-up post, Zhao reflected, “Overall, I think I’ve always been lucky. The process was painful, but it didn’t break me. My public record suffered a bit, but my reputation remained intact. No one stopped doing business with me. My family, friends, and community supported me. I was never alone. Thank you for the support! Let’s keep building.”
A representative for Binance noted the company’s ongoing commitment to creating a secure platform that prioritizes users while making financial systems more accessible for everyone.
President Trump, during a recent roundtable at the White House, remarked on Zhao’s situation, saying, “Let me tell you, I don’t know him and I don’t think I’ve ever met him, but I’ve heard he has a lot of support, and what he did was not even a crime.” He emphasized that Zhao’s persecution by the Biden administration warranted clemency, a request from many supporters.
This decision comes in light of a cryptocurrency venture the Trump family launched last year called World Liberty Financial, which operates on Binance. This has drawn scrutiny from Democrats, raising questions about potential conflicts of interest given the family’s increasing wealth in cryptocurrencies.
Meanwhile, Zhao’s pardon has been well-received by crypto investors. According to CoinMarketCap, Binance’s BNB token has seen an impressive nearly 80% surge this year, positioning it as the fourth-largest cryptocurrency after Bitcoin, Ether, and Tether.
Notably, Bitcoin experienced a nearly 2% increase on Thursday following the news of the pardon.
