Trump Grants Pardon to Binance Founder Changpeng Zhao

US President Donald Trump has pardoned Changpeng Zhao, the founder of Binance, the world’s largest cryptocurrency exchange. This decision, announced by a White House official on Thursday, comes after Zhao pleaded guilty to money laundering charges in 2023 and stepped down from his role as CEO.

In a statement, White House press secretary Karoline Leavitt emphasized that Trump “exercised his constitutional authority by issuing a pardon for Mr. Zhao, who was prosecuted by the Biden Administration in their war on cryptocurrency.” This pardon raises significant implications for the future operations of Binance within the United States.

Zhao, often referred to as CZ, was sentenced in April 2024 to four months in prison after agreeing to pay $4.3 billion to settle allegations related to his company’s operations. Prosecutors had sought a three-year prison sentence, reflecting the severity of the charges he faced. The US Securities and Exchange Commission (SEC) filed 13 charges against both Zhao and Binance, which included allegations of commingling customer assets with funds from an entity owned by Zhao, called Sigma Chain.

The legal battles surrounding Binance have had immediate impacts on the cryptocurrency market, causing Bitcoin to lose nearly 2 percent of its value within minutes of the news breaking. The pardon may allow Binance to resume its operations in the US, a prospect the company has been lobbying for over the past year, according to reports from Axios.

This significant development highlights the ongoing tensions in the cryptocurrency sector, where regulatory scrutiny has intensified in recent years. Zhao’s legal troubles and subsequent pardon symbolize the complexities facing cryptocurrency exchanges as they navigate a rapidly evolving regulatory landscape.

As Binance prepares for potential re-entry into the US market, industry observers will closely monitor how this pardon influences regulatory attitudes and the broader cryptocurrency ecosystem. The outcome could serve as a pivotal moment for Binance and its operations moving forward.