US President Donald Trump has pardoned Binance founder and former CEO Changpeng Zhao in a move that reflects the administration’s friendly approach to the cryptocurrency sector.
Zhao was sentenced to four months in prison after pleading guilty to one count of failing to implement adequate anti-money laundering programs at Binance and violating the Bank Secrecy Act.
President Trump Pardons Changpeng Zhao
US President Donald Trump has pardoned convicted Binance founder Changpeng “CZ” Zhao after months of appeals and lobbying from the company and its former CEO. Zhao was imprisoned after failing to prevent criminals from using Binance to launder money associated with various illicit activities. Zhao stated during his sentencing,
“I failed here. I deeply regret my failure, and I am sorry.”
The president signed the pardon on Wednesday, according to sources close to the developments. However, no official confirmation or details have been posted on the White House Website or in the Federal Register, where presidential pardons are typically announced. However, Binance has separately confirmed the pardon for its former CEO.
Zhao’s pardon is the latest example of the Trump administration’s friendly stance towards crypto. President Trump has used his executive power to pardon political allies, prominent public figures, and individuals from the crypto ecosystem. Trump had stated earlier when discussing Zhao’s pardon,
“A lot of people say that he wasn't guilty of anything.”
Binance also agreed to pay a fine of over $4 billion to settle the investigation. US Attorney General Merrick Garland stated at the time that Binance had paid one of the largest corporate penalties in US history. He also said that “Binance had become the world’s largest cryptocurrency exchange partly because of the crimes it committed.”
Binance Confirms Pardon
Zhao pleaded guilty in November 2023 to one count of failing to implement adequate anti-money laundering measures and violating the Bank Secrecy Act. As part of a plea deal, Zhao agreed to step down as the CEO of Binance. However, he was subsequently released from prison in September. Binance confirmed the news of the pardon in a statement.
“Incredible news of CZ’s pardon today. We thank President Trump for his leadership and for his commitment to make the US the crypto capital of the world. CZ’s vision not only made Binance the world’s largest crypto exchange but also shaped the broader crypto movement.”
White House spokesperson Caroline Leavitt said in a statement on Thursday,
“President Trump exercised his constitutional authority by issuing a pardon for Mr. Zhao, who was prosecuted by the Biden Administration in their war on cryptocurrency. In their desire to punish the cryptocurrency industry, the Biden Administration pursued Mr. Zhao despite no allegations of fraud or identifiable victims.”
Pardon Bets Growing
Speculation over a possible pardon for Zhao had been growing for weeks, with betting markets showing increased odds after Zhao quietly removed the “ex-Binance” tag from his social media handles. New York Post and Fox News correspondent Charles Gasparino also noted that momentum for a pardon was picking up, adding that President Trump was leaning towards a pardon, which could potentially clear the way for Zhao to return to Binance, where he remains the platform’s largest shareholder.
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