Disgraced Binance Founder Gets a Pardon From Trump

Changpeng Zhao, founder of cryptocurrency exchange Binance and convicted felon, was pardoned by Donald Trump on Thursday. The pardon follows months of Zhao acting as a booster for the Trump family’s cryptocurrency projects and may open a path for Binance to once again operate legally within the United States.

“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,†White House press secretary Karoline Leavitt said in a statement. “The war on crypto is over.â€

In 2023, Zhao pleaded guilty to one count of violating the American Bank Secrecy Act by failing to comply with the Financial Crimes Enforcement Network’s anti-money laundering requirements. As part of the settlement agreement, Zhao agreed to step down from his role as CEO of Binance and pay a $50 million fine. He served four months in prison related to the charges.

Considering that Zhao has already served his time behind bars, it’s likely the biggest benefit of the pardon for him will be to relieve him of paying restitution. Prior pardons handed out by Trump, typically to people who supported him or donated to his campaign, as former Department of Justice employee Liz Oyer told Gizmodo earlier this year. Thus far, pardons have wiped out as much as $1.2 billion in restitution, including a $660 million penalty for Nikola founder Trevor Milton.

Since then, Zhao has been cozying up to Trump. As documented by the New York Times, Zhao went on a publicity blitz to speak positively about Trump and his cryptocurrency-related policies. Behind the scenes, he and a team of lobbyists and lawyers started working their ties with the Trump team. Following Trump’s election, Binance has become one of the biggest boosters of World Liberty Financial, the Trump family’s crypto venture. When World Liberty Financial launched its stablecoin and completed a $2 billion transaction with an investment firm owned by the government of Abu Dhabi, the exchange happened on Binance’s platform. Trump’s family has reportedly netted nearly $5 billion in additional net worth thanks to its World Liberty Financial operation.

In addition to the pardon, the Wall Street Journal also reported that the Justice Department may end its planned three-year monitorship of Binance, which was meant to ensure the company complies with all US financial crime laws and regulations. The paper speculated that it’s possible that it will open up a path for Binance to return to doing business in the US. Earlier this year, WSJ reported that Trump’s family had conversations with Binance about taking a financial stake in the company’s US operations.