Trump Pardons Binance Founder Changpeng Zhao After Four-Month Sentence
US President Donald Trump has granted a pardon to Changpeng Zhao, the billionaire founder of cryptocurrency exchange Binance, who received a four-month prison sentence in 2024 for breaking US money laundering regulations. The White House confirmed the decision on Thursday is another sign that Trump’s administration is taking a friendlier stance toward crypto.
Zhao’s Conviction Stemmed from the Binance Scandal
Zhao, widely known in the cryptocurrency community as “CZ”, pleaded guilty last year to failing to maintain an adequate anti-money laundering program at Binance. The US Department of Justice had found that his platform allowed illegal transactions linked to drug trafficking and terrorism. After his plea, Binance agreed to pay $4.3 billion, which is one of the biggest corporate penalties ever in US history. Zhao paid a $50 million personal penalty, resigned as CEO, and started serving his sentence in April 2024. He finished serving his prison time in September of that year.
White House Defends Pardon, Citing “Overreach” by Previous Administration
White House press secretary Karoline Leavitt stated that President Trump used his constitutional authority to “correct” what he described as overreach by the Biden administration, which she said had been “hostile to crypto innovation.” Trump’s team has also emphasized his goal to make the United States “the crypto capital of the world.” In his statement, Trump said Zhao had been “recommended by many people” and that “a lot of good people” insisted that what he did “wasn’t even a crime.” Zhao expressed gratitude on social media, thanking Trump for “upholding fairness, innovation, and justice”.
News at a Glance
- President Trump pardons Binance founder Changpeng Zhao, also known as CZ.
- Zhao served four months in prison for failing to enforce anti-money laundering protections.
- Binance paid $4.3 billion in penalties to settle its US case in 2024.
- The White House calls the pardon a correction of “regulatory overreach” against crypto.
FAQ
- Why was Changpeng Zhao imprisoned?
He pleaded guilty to violating US anti-money laundering laws after authorities found Binance allowed unlawful financial transactions.
- How much time did Zhao serve?
Zhao served four months of a federal prison term before being released in September 2024.
- Why did Trump pardon him?
Trump explained that he wanted to “fix an overreach” by the former administration and encourage innovation in cryptocurrency regulation.
- What does this mean for Binance?
The pardon may enable Zhao to resume business activities with Binance, which remains the world’s largest crypto exchange.
