President Donald Trump has pardoned Changpeng Zhao, co-founder of cryptocurrency exchange Binance, who had pleaded guilty to a money laundering charge. The pardon was announced by White House press secretary Karoline Leavitt, who stated that Trump "exercised his constitutional authority by issuing a pardon for Mr. Zhao, who was prosecuted by the Biden Administration in their war on cryptocurrency."
Leavitt's statement further argued that the Biden administration's sentencing of Zhao was unduly harsh, a sentiment shared by the president and his advisors following an extensive lobbying effort by Binance for Zhao's pardon.
The pardon could potentially pave the way for Binance, the world's largest crypto exchange, to resume operations within the United States.
Zhao, known as "CZ," was sentenced to four months in prison in May 2024 after admitting guilt to charges of failing to maintain an effective anti-money laundering program. As part of a broader settlement, Zhao resigned as CEO of Binance, the company he founded in 2017, and agreed to pay $200 million in fines. Binance itself incurred over $4 billion in fines and other penalties through a coordinated settlement with the federal government in 2023. The company acknowledged engaging in anti-money laundering activities, unlicensed money transmitting, and sanctions violations.
