President Donald J. Trump pardoned disgraced Binance founder Changpeng "CZ" Zhao following the scrutiny he faced under the Biden administration.
Trump Pardons Binance Founder Changpeng Zhao
According to a new report by The Wall Street Journal (via The Verge), President Donald Trump has issued a pardon today to one of the most controversial crypto executives in history, Changpeng Zhao.
The reports highlight how Trump looked to change how the current American government views cryptocurrency, particularly as the Biden administration previously scrutinized it.
According to White House Press Secretary Karoline Leavitt's statement to WSJ, "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."
Zhao was previously convicted of his crimes, which centered on allowing money laundering on Binance and seeing multiple transactions amounting to as much as $900 million between the US and Iran.
Zhao Helped Promote the Trump Family's WLF
According to the Journal, the move by the US president came after months of Zhao promoting the Trump family's cryptocurrency venture, World Liberty Financial.
Moreover, the report also mentioned that WLF previously benefited from a secret partnership with a trading platform operated by Binance that has generated as much as $4.5 billion since the 2024 elections.
The Verge reported that following this pardon, the US Justice Department's probe into Binance also effectively ends and could pave the way for Zhao and Binance's return to business in the United States.
Changpeng Zhao and Binance Scrutiny
The Biden administration closely investigated Binance and Changpeng Zhao's activities over the years following its landmark prosecution of former FTX CEO and founder Sam Bankman-Fried. In late 2023, after filing charges against Binance and Zhao, the high-ranking executive pleaded guilty, and the crypto exchange platform worked on a plea deal settlement for $4.3 billion.
The scrutiny focuses on the US Securities and Exchange Commission's case against Binance and its former CEO, claiming that they violated multiple federal violations and failed to secure the proper licenses and securities for their operations. Because of Zhao's guilty plea, he only got a four-month prison sentence from the Justice Department despite the recommended 12 to 18 months behind bars.
Part of Zhao's plea deal includes a $50 million fine to be paid out to the Justice Department, as well as an agreement that the disgraced executive will no longer serve as a Binance executive ever.
Originally published on Tech Times
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