Trump Pardons Binance CEO Changpeng Zhao
In a significant move, former President Donald Trump has granted a pardon to Changpeng Zhao, the co-founder of Binance. Zhao had pleaded guilty to a money laundering charge earlier in 2023. This decision was announced by the White House on Thursday.
Background on Changpeng Zhao and Binance
Changpeng Zhao, commonly known as CZ, co-founded Binance in 2017. Under his leadership, Binance grew to become the largest cryptocurrency exchange globally. However, Zhao faced legal challenges, culminating in a guilty plea and a four-month prison sentence issued in May 2024.
Details of the Pardon
White House press secretary Karoline Leavitt confirmed that Trump exercised his constitutional power by pardoning Zhao. This decision responds to sentiments that the Biden administration’s legal actions against Zhao were excessively severe. Trump and his advisors expressed their agreement with these views, particularly following an intense lobbying effort by Binance advocating for the pardon.
- Pardon Date: Thursday, (exact date unspecified)
- Charge: Money laundering
- Original Sentence: Four months in prison (May 2024)
- Fines Paid by Zhao: $200 million
- Binance Fines: Over $4 billion in 2023 for various violations
Implications of the Pardon
The pardon could restore Binance’s ability to operate in the U.S. market. Trump has previously stated his ambition to transform the U.S. into the “crypto capital of the planet.” This move aligns with that vision and highlights potential conflicts of interest, given the family’s ties to Binance through their own cryptocurrency firm, World Liberty Financial.
Legal Challenges Faced by Binance
In 2023, Binance acknowledged involvement in multiple violations, including:
- Failure to maintain a proper anti-money laundering program
- Unlicensed money transmitting
- Violations of sanctions
The firm’s penalties stemmed from a coordinated settlement with federal authorities, resulting in significant financial repercussions.
This pardon, reported initially by The Wall Street Journal, marks a crucial development for both Changpeng Zhao and Binance, potentially altering the landscape of cryptocurrency regulation in the United States.
