President Donald Trump granted a full pardon to Chao Changpeng, the founder of the cryptocurrency exchange Binance, who was convicted of a crime.
The move came after months of lobbying by Mr. Zhao and his allies, who argued that his prosecution was politically motivated. Mr. Zhao was also seeking partnerships to strengthen the Trump family’s own cryptocurrency ventures, the people said.
According to the Wall Street Journal, President Trump signed the pardon on Wednesday, making it one of his most controversial decisions since returning to the White House.
Advisers said he had recently expressed sympathy for Mr. Zhao and described the Binance founder’s case as part of a broader “crypto war” waged by the previous administration.
White House press secretary Caroline Levitt granted the pardon, saying Trump had “exercised his constitutional authority” to correct what he saw as a politically-driven prosecution.
“The Biden administration’s crypto war is over,” she said, according to WSJ.
Mr. Zhao pleaded guilty to violating U.S. anti-money laundering laws and was serving a sentence in connection with Binance’s compliance violations. The latest pardon effectively erases his record and could reshape Washington’s attitude toward the crypto industry.
There have been rumors that former Binance CEO Qiao Changpeng, known as “CZ,” was being considered for a presidential pardon this year.
According to FOX Business’ Charles Gasparino, debate raged within the Trump White House over whether to pardon Zhao this quarter.
President Trump’s decisions and interests on the issue were reportedly divided between foreign policy flashpoints, such as Ukraine’s Gaza conflict and renewed trade tensions with China.
Binance and Zao have not yet issued any public comments. This story is developing.
CZ background
Changpeng Zhao’s 2023 conviction became one of the highest-profile cases in the government’s campaign against major exchanges.
U.S. prosecutors accused Binance of allowing illegal transactions with sanctioned companies and failing to implement adequate anti-money laundering measures. Mr. CZ pled guilty, resigned as CEO, and paid a $50 million personal fine.
Mr. Zhao was sentenced to four months in prison. He was sentenced in April 2024 and released in September 2024 after spending time in a low-security federal prison in California.
Nevertheless, even Binance’s critics question whether the criminal charges are meritorious.
Trump’s team reportedly sees the Zhao situation as an opportunity to demonstrate a “new era” of crypto policy that emphasizes innovation over punishment.
Source: https://bitcoinmagazine.com/news/trump-pardons-binance-founder-cz
