In a controversial decision, President Trump has granted a pardon to Changpeng Zhao, the billionaire founder of the cryptocurrency exchange Binance, who recently pleaded guilty to a charge related to money laundering. The pardon comes amidst claims from Trump that Zhao was unjustly targeted by the Biden administration as part of a broader campaign against the cryptocurrency sector.
Zhao, a Chinese-born Canadian entrepreneur, entered a guilty plea in November 2023, acknowledging his role in enabling money laundering during his tenure as CEO of Binance. This plea was included in a larger multi-billion-dollar settlement that Binance negotiated with the Justice Department under the Biden administration earlier in 2023. Following his guilty plea, Zhao resigned from his position and was subsequently sentenced to four months in prison in April 2024. Additionally, Binance faced restrictions that effectively barred the company from operating within the United States.
White House press secretary Karoline Leavitt defended the pardon, stating that Trump acted within his constitutional rights to protect Zhao from what she characterized as politically motivated prosecution. “In their desire to punish the cryptocurrency industry, the Biden administration pursued Mr. Zhao despite no allegations of fraud or identifiable victims,” Leavitt stated, emphasizing the extreme nature of Zhao’s sentencing, which she claimed was unprecedented in her experience and damaging to the U.S.’s status in technology and innovation.
Zhao is considered one of the wealthiest individuals in the world, with a net worth estimated at around $86 billion, according to Forbes. He founded Binance in 2017, quickly transforming it into one of the largest cryptocurrency exchanges globally. Despite his recent legal troubles, Zhao reportedly retains substantial ownership of the exchange.
Additionally, there are connections between Zhao and the Trump family regarding investments in the cryptocurrency market. Donald Trump’s sons, Eric and Donald Jr., launched World Liberty Financial last year. Notably, an investment fund based in the United Arab Emirates partnered with World Liberty Financial to support its acquisition of a stake in Binance, further intertwining the interests of the Zhao and Trump families.
When questioned about this financial partnership last year, Trump claimed he was unaware of the specifics. The recent pardon has reignited discussions about the regulation of cryptocurrency and the perceived ongoing conflict between the cryptocurrency industry and federal regulations under the current administration.
