Trump Pardons Binance Founder Changpeng Zhao In a major move for the cryptocurrency industry, the White House announced that President Donald Trump has pardoned Binance founder Changpeng Zhao. Zhao, widely known as CZ, had pleaded guilty to federal money laundering charges in 2023 and was sentenced last year to serve four months in prison. He was released from custody in September of this year. As a central part of his original plea deal, Zhao stepped down from his role as CEO of the global cryptocurrency exchange Binance. He was also formally banned from any involvement with the company for a period of three years. According to reports, both Zhao and the company Binance itself submitted formal applications for pardons by August of this year. White House press secretary Karoline Leavitt released a statement framing the decision. She said Trump exercised his constitutional authority by issuing the pardon for Zhao, who she stated was prosecuted by the Biden Administration in their war on cryptocurrency. Leavitt added, The Biden Administration’s war on crypto is over. This presidential pardon is seen as a potential pathway for Binance to resume operations within the United States. The company was barred from operating in the country after it also pleaded guilty to violating anti-money laundering and sanctions laws in 2023. Reports indicate that Binance officials have already met with representatives from the Treasury Department this year in an effort to reduce the level of US oversight on the company. The decision comes amid notable financial connections between Binance and the Trump family’s cryptocurrency venture, World Liberty Financial. This business relationship has been financially beneficial for the president. For instance, Binance’s involvement helped bolster the growth of USD1, a World Liberty Financial stablecoin that is pegged to the value of the US dollar. This spring, Binance received a massive two billion dollar investment that was paid entirely in the World Liberty Financial USD1 token. Since last year’s presidential election, World Liberty Financial has reportedly generated approximately 4.5 billion dollars. The pardon of Zhao has also turned attention to other prominent figures in the crypto world seeking clemency. FTX founder Sam Bankman-Fried has also been reportedly seeking a pardon from President Trump. Bankman-Fried was found guilty of fraud and conspiracy to commit money laundering and was sentenced in 2024 to 25 years in prison. Another crypto billionaire, Justin Sun, has deep ties to the Trump venture. Sun stated last November that he had invested 30 million dollars into World Liberty Financial, an amount that was later reported to have increased to 75 million dollars. In a notable subsequent development, the Securities and Exchange Commission dropped a case against Sun in February of this year. The SEC had previously charged him in 2023 with alleged violations of securities laws.
