Changpeng Zhao, the founder of Binance, the largest cryptocurrency exchange globally, has received a pardon from former U.S. President Donald Trump. This followed Zhao’s sentencing to four months in prison in April 2024 after he pleaded guilty to violating U.S. money laundering laws. Binance also admitted to guilt in the matter and was fined $4.3 billion after a U.S. inquiry revealed it allowed users to evade sanctions.
The pardon has sparked discussions about the government’s approach to cryptocurrency, particularly given the Trump family’s increasing investments in the sector. White House Press Secretary Karoline Leavitt described Zhao’s prosecution as part of a “war on cryptocurrency” by the Biden administration. She defended the pardon, labeling it a correction of what she termed “overreach” by Biden’s administration.
Binance reportedly spent nearly a year seeking a pardon for Zhao, who completed his prison term in September 2024. During this period, Trump, having positioned himself as more supportive of cryptocurrency than his predecessors, initiated a series of regulatory relaxations in the sector.
Zhao, who stepped down as CEO of Binance in 2023, expressed gratitude for the pardon and its implications for American entrepreneurship and innovation. However, the effects of this legal development on Zhao’s status with U.S. regulators and his role at Binance remain ambiguous.
Prior to the pardon, Zhao’s ventures had collaborated with firms associated with Trump, including on initiatives in digital currency. Additionally, Trump has previously halted investigations into various cryptocurrency figures and has granted pardons to others involved in similar regulatory infractions.
The legality and ramifications of these actions have prompted criticism, including from some lawmakers who have raised concerns about potential conflicts of interest stemming from the relationship between Zhao and the Trump family.
Source: https://www.bbc.com/news/articles/cly1qrl9l1qo?at_medium=RSS&at_campaign=rss