Former US President Donald Trump has granted a full pardon to Changpeng Zhao, widely known as CZ, the founder of Binance. This significant development follows CZ’s 2023 guilty plea for enabling money laundering during his leadership of the world’s largest cryptocurrency exchange. The pardon, which comes amidst ongoing discussions about the administration’s approach to the cryptocurrency sector, removes earlier limitations that had prevented Zhao from operating financial businesses. Both Binance and CZ have warmly welcomed the decision, with Binance hailing it as “incredible news” and emphasizing CZ’s pivotal role in shaping the broader crypto movement.
CZ Freed to Resume Leadership and Drive Web3 Initiatives
Zhao had previously received a four-month prison sentence last year, having stepped down as Binance CEO in 2023 as part of a substantial $4.3 billion settlement with the Department of Justice. His plea addressed serious violations of the Bank Secrecy Act and the International Emergency Economic Powers Act. Prosecutors had alleged that Binance failed to implement an effective anti-money-laundering program and knowingly allowed users to circumvent US sanctions. At the time, former Treasury Secretary Janet Yellen highlighted that the platform’s shortcomings facilitated illicit financial flows to child abusers, cybercriminals, and terrorists.
CZ took to a social media platform to express his profound gratitude, stating: “Deeply grateful for today’s pardon and to President Trump for upholding America’s commitment to fairness, innovation, and justice. Will do everything we can to help make America the Capital of Crypto and advance Web3 worldwide.”
Binance echoed this sentiment in its own public statement: “Incredible news of CZ’s pardon today! Thank you, President Trump, for your leadership and 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 shaped the broader crypto movement.”
Further revelations in September showed that Binance had enlisted lobbyist Charles McDowell, a known associate of Donald Trump Jr., to advocate with the White House and Treasury Department for “executive relief” and policy considerations related to digital assets.
This pardon is indicative of a broader pattern of US government interventions within the crypto sector. Previously, the administration notably halted a fraud case involving Justin Sun, who had connections to the Trump family’s World Liberty Financial crypto venture.
The US President had also granted pardons to Ross Ulbricht, the creator of the dark web marketplace Silk Road, and the founders of BitMex, who had faced accusations of money laundering. These actions collectively suggest a potential reshaping of the regulatory landscape for cryptocurrency within the US.
White House Press Secretary Karoline Leavitt framed the pardon as a correction to what the administration perceived as overreach by the previous administration. She commented that it was “an overly prosecuted case by the Biden administration,” confirming that the pardon was exercised after thorough review.
With his return to operational independence, CZ is widely expected to continue influencing Binance’s strategic direction and actively participate in the evolving Web3 and broader cryptocurrency world.
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