Changpeng Zhao, widely recognized as the founder of Binance, the globe’s leading cryptocurrency exchange, has been granted a pardon by U.S. President Donald Trump. Zhao, also known by his initialism “CZ,” had previously received a four-month prison sentence in April 2024 after admitting to violating U.S. money laundering statutes.
The crypto giant Binance was also compelled to pay a substantial $4.3 billion (£3.4 billion) penalty following an extensive U.S. investigation that revealed the company had facilitated sanctions evasion for its users.
Karoline Leavitt, the White House Press Secretary, characterized Zhao’s prosecution under the Biden administration as an aggressive stance within a “war on cryptocurrency.” She asserted that Zhao was targeted without any accusations of fraud or a clearly identified victim, and that the prosecutors’ pursuit of a three-year sentence had negatively impacted the United States’ international standing.
Leavitt declared, “The Biden Administration’s war on crypto is over.” This pardon signals a departure from the policies of previous administrations and aligns with the Trump administration’s more favorable approach to cryptocurrencies.
President Trump has publicly committed to positioning the U.S. as the premier hub for cryptocurrency globally. He further cemented his interest in the digital asset space by launching his own coin shortly before his inauguration in January.
Since taking office, his administration has explored establishing a national cryptocurrency reserve and has advocated for simplifying the process for Americans to invest their retirement savings into digital assets.
Reports from The Wall Street Journal indicated that representatives associated with the Trump family, which has its own cryptocurrency venture, World Liberty Financial, recently engaged in discussions with Binance. The company has reportedly been actively seeking a pardon for its former leader for nearly a year, with Zhao having completed his prison sentence in September 2024.
Binance has been contacted for a statement regarding these developments.
The exchange, officially registered in the Cayman Islands, continues to be the most prominent platform for the trading of cryptocurrencies and other digital assets worldwide.
Zhao announced his departure from his role at Binance in November 2023, noting on the social media platform X that it was an emotionally challenging decision but the “right thing to do.” He acknowledged his past mistakes and his responsibility to own them.
U.S. officials had previously accused Binance and Zhao of “wilful violations” of U.S. laws, asserting that their actions posed a threat to the American financial system and national security. Former Treasury Secretary Janet Yellen stated at the time that Binance had disregarded its legal obligations in its pursuit of profit, allowing illicit funds to flow through its platform to various criminal entities.