U.S. President Donald Trump has pardoned Changpeng Zhao, founder of the world's largest crypto exchange Binance, who served a four-month prison sentence in 2024 for violating U.S. money laundering laws. The pardon followed months of public support from Zhao for Trump's pro-crypto agenda and involvement with Trump-linked crypto ventures.
Zhao pleaded guilty in November 2023, and Binance paid a $4.3 billion fine after federal investigators found the exchange had enabled sanctions evasion and served as a channel for terrorists, hackers, and human traffickers. As part of the settlement, Zhao stepped down as Binance CEO. Prosecutors had sought a three-year sentence, but the judge imposed four months. White House Press Secretary Karoline Leavitt described the pardon as a correction of the Biden administration's war on cryptocurrency, stating the case involved no allegations of fraud or identifiable victims. Senator Elizabeth Warren countered by warning of a corruption pattern, noting that the Trump family's crypto venture World Liberty Financial helped facilitate a $2 billion investment in Binance. The pardon lifts restrictions on Zhao's financial ventures, though its effect on his regulatory standing and ability to lead Binance directly remains unclear.
Since taking office, Trump has pardoned several crypto-linked figures, including Silk Road founder Ross Ulbricht and BitMEX exchange founders, while FTX founder Sam Bankman-Fried is also reportedly seeking a pardon according to The New York Times. The Zhao pardon is the latest signal of Washington's sharp pivot on crypto policy, as Democrats push for strict ethics guardrails in ongoing crypto legislation in Congress.
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