The administration of Donald Trump is reportedly weighing a pardon for Changpeng “CZ” Zhao, a co-founder of Binance who previously pled guilty to money laundering and served four months in prison.
According to Charles Gasparino, sources suggest that Trump and his team believe the legal case against Zhao was insufficiently robust for a felony conviction and jail time.
“Trump is leaning toward a pardon, which could facilitate CZ’s return to Binance as he remains the largest shareholder,” Gasparino claimed, citing close associates of Zhao.
Source: Charles Gasparino
While under Trump’s leadership, the White House has cultivated a more approachable stance toward cryptocurrency. They’ve seen significant regulatory dismissals and advancements in legislation affecting the industry, alongside pardons for three founders of BitMEX including Arthur Hayes, and Ross Ulbricht, the founder of Silk Road.
Changpeng Zhao Uncertain About Pardon
Zhao replied to Gasparino, although he did not confirm knowledge of the potential pardon. In a past interview, Zhao stated he had applied for a pardon after media reports implied he had sought one.
Zhao mentioned, “Thank you, Charles. Great news if true. Minor correction, there were no fraud charges… I pled guilty to a single violation of the Banking Secrecy Act (BSA).” He emphasized that he may be the only individual ever sentenced to jail for that particular violation.
“I believe I am the only person to ever be sentenced to jail in US history for a single violation of BSA, with no other charges, no prior history. Thank you for the coverage,” Zhao added in a follow-up post.
In November 2023, Binance and Zhao came to an agreement with U.S. authorities, resulting in a $4.3 billion fine for the exchange and a $50 million fine for Zhao himself. Following this, Zhao was compelled to resign as CEO and serve prison time.
Potential Obstacles for Pardon
Gasparino indicated that a decision regarding the pardon may be imminent. However, some within the White House are concerned about the implications of such a pardon given Trump’s involvement in the cryptocurrency space.
Trump’s family connections to the crypto sector, including business dealings related to a memecoin and a decentralized finance protocol named World Liberty Financial, have previously raised questions about conflicts of interest.
“Keep in mind these matters can be prolonged beyond expectations. The president is currently preoccupied with multiple urgent issues including the return of Israeli hostages and international conflicts as well as negotiations with China,” Gasparino noted.
Lastly, referencing Eleanor Terrett, discussion surfaced about how some industry leaders viewed the charges against Zhao as a reaction to the collapse of Sam Bankman-Fried’s FTX, with many believing that Zhao’s prosecution was an attempt to make an example post-FTX collapse.
