Trump Grants Pardon to Binance’s Changpeng Zhao After Guilty Plea

President Trump Pardons Changpeng Zhao

In a significant development, President Donald Trump has granted a pardon to Changpeng Zhao, the architect behind Binance, which is recognized as the world's largest cryptocurrency exchange. This was confirmed on Thursday by White House press secretary Karoline Leavitt, who stated, "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." The Wall Street Journal was the first to report the news, revealing that the pardon was signed by Trump on Wednesday.

Zhao's Response to the Pardon

Expressing his gratitude, Zhao took to X to thank President Trump, stating, "Deeply grateful for today’s pardon and to President Trump for upholding America’s commitment to fairness, innovation, and justice." His sentiments reflect a sense of relief and appreciation following a challenging period.

Context of the Pardon

This decision follows extensive speculation over the past few months about whether Trump would choose to pardon Zhao, who is affectionately referred to as CZ within crypto circles. In 2023, Zhao pleaded guilty to charges related to his failure to uphold effective anti-money laundering practices while serving as the CEO of Binance. Consequently, he resigned from his position and subsequently served four months in prison in 2024.

Settlement and Legal Challenges

As part of Zhao's plea agreement in 2023, Binance consented to a hefty payment of $4.3 billion to resolve allegations brought forth by the Department of Justice. Prosecutors accused the exchange of breaching U.S. economic sanctions and money laundering regulations. Internal communications from compliance staff included alarming remarks, such as, "We need a banner 'is washing drug money too hard these days – come to Binance we got cake for you.'" These comments shed light on the serious nature of the allegations against the company.

Management Changes at Binance

In the wake of Zhao’s resignation, Binance appointed Richard Teng, a former financial regulator from the UAE and Singapore, as the new CEO, signaling the company's commitment to compliance with regulatory standards. However, it is important to note that the recent presidential pardon does not extend to Binance as a corporation. The White House has not provided additional comments regarding the specifics of the pardon.

Binance’s Reaction

A spokesperson for Binance expressed appreciation for Trump's decision, stating, "We thank President Trump for his leadership and for his commitment to make the U.S. the crypto capital of the world." This statement underscores the company's optimism about the future under Trump’s administration.

Market Impact

Following the announcement of Zhao's pardon, the value of BNB, the cryptocurrency closely associated with Binance, surged by 15%, reaching a peak of over $1,150, according to data from the exchange. This sharp increase reflects the market's positive reception to the news.

Trump’s Influence on the Crypto Industry

The pardon of Zhao marks a significant endorsement for the cryptocurrency sector, indicating the favorable stance that the industry has experienced under Trump’s leadership. Notably, Zhao is not the first individual linked to crypto to receive a pardon during Trump’s presidency.

Shift in Trump’s Stance on Cryptocurrency

Once a skeptic of cryptocurrencies, Trump has since embraced the industry, especially in his 2024 reelection campaign, where he received substantial financial support from crypto executives through donations to Trump-affiliated super PACs. His administration has indicated a strong interest in positioning the U.S. as a leading hub for cryptocurrency innovation.

As Trump continues to navigate the complex landscape of cryptocurrency regulation and support, the implications of Zhao's pardon could resonate throughout the industry, influencing both public perception and regulatory approaches.