TLDR
- President Trump has granted a pardon to Binance founder Changpeng Zhao.
- White House Press Secretary Karoline Leavitt criticized the Biden administration’s stance on cryptocurrency.
- The pardon signals a shift in U.S. policy towards the crypto industry under President Trump.
- Changpeng Zhao faced legal troubles, including a prison sentence and fines, for failing to maintain an anti-money laundering program.
- The pardon could pave the way for Zhao to return to leading Binance despite previous legal restrictions.
President Donald Trump has granted a pardon to Changpeng Zhao, the founder of Binance, according to White House Press Secretary Karoline Leavitt. Leavitt’s statement sharply criticized the previous Biden administration’s stance on cryptocurrency. The pardon marks a significant shift in how U.S. administrations approach the crypto industry.
Changpeng Zhao Admits Requesting Trump Pardon
Karoline Leavitt issued a statement saying, “President Trump exercised his constitutional authority by issuing a pardon for Mr. Zhao.” She also criticized the Biden administration, claiming it waged a “war on cryptocurrency.” Leavitt emphasized that the charges against Zhao lacked evidence of fraud or identifiable victims.
Leavitt further said, “The Biden Administration’s war on crypto is over,” signaling a change in policy under President Trump. She pointed out that Zhao was prosecuted under the previous administration despite a lack of substantial allegations against him.
Changpeng Zhao, known as CZ, previously denied pushing the Trump administration for a pardon. However, he later admitted in a podcast that he had formally requested the pardon. The pardon follows Zhao’s legal troubles, including a prison sentence for failing to maintain an effective anti-money laundering program.
Zhao was sentenced to four months in prison in 2023. Binance, the crypto exchange Zhao founded, paid a significant fine of $4.3 billion as part of a settlement. Zhao also faced a $50 million fine personally for his involvement in the case.
Potential Implications for Binance and Zhao’s Future
Zhao’s pardon could pave the way for him to return to leading Binance. Despite being the company’s largest shareholder, Zhao had been banned from running Binance due to his plea agreement with the U.S. government. Reports suggest that many Trump insiders view the fraud case against Zhao as weak.
The pardon also raises questions about the future of cryptocurrency regulation. It signals that under President Trump, the U.S. may adopt a more lenient stance toward the crypto industry. However, the implications for Binance and Zhao’s role remain unclear.
