US President Donald Trump has granted a full pardon to Changpeng Zhao, the founder of Binance, one of the world’s largest cryptocurrency exchanges. Zhao had been convicted of violating US money laundering laws, a case that had drawn international attention to the country’s regulatory stance on digital assets. The announcement came through White House press secretary Karoline Leavitt, who stated that Trump had “exercised his constitutional authority by issuing a pardon for Mr. Zhao, who was prosecuted by the Biden Administration in their war on cryptocurrency.”
Zhao, often known as CZ, expressed gratitude for the decision, saying in a post on X that he was thankful for the pardon and for what he described as Trump’s commitment to “fairness, innovation, and justice.” He further stated that he intends to continue contributing to efforts aimed at making the United States “the Capital of Crypto.” Zhao, a Canadian citizen born in China, had previously stepped down as the chief executive of Binance in 2023 after the company admitted to failing to maintain an effective anti-money laundering program and paid a penalty of 4.3 million dollars. He later served a four-month sentence for violating the Bank Secrecy Act before being released last year.
The case against Zhao marked the first time an individual had been sentenced under the Bank Secrecy Act to prison time for violations of this nature. Prosecutors had claimed that Zhao’s actions represented an unprecedented breach of compliance regulations requiring financial institutions to identify their customers, monitor transactions, and report suspicious activities. The presidential pardon effectively clears Zhao’s federal conviction, potentially allowing him to re-engage in the business operations he once led and restoring his position as a key figure in the global crypto ecosystem.
This move by Trump follows a series of pardons granted to cryptocurrency executives and entrepreneurs in recent months. Earlier this year, he pardoned the three co-founders of BitMEX, a crypto exchange that faced similar charges for not adhering to anti-money laundering compliance requirements. Trump has also extended clemency to other prominent figures, including the founder of Nikola and an executive from Ozy Media, both of whom were convicted of fraud-related offenses. In January, he pardoned Ross Ulbricht, the founder of the Silk Road online marketplace, a decision that resonated strongly within the crypto community.
The pardon is seen as part of Trump’s broader policy shift aimed at positioning the United States as a global hub for cryptocurrency innovation. During his 2024 campaign, Trump had secured support from the crypto sector by pledging to reverse what he described as the Biden administration’s restrictive policies targeting crypto companies for compliance violations. While the specifics of Zhao’s pardon have not yet been disclosed, it could pave the way for Binance to expand its presence in the US and for Zhao to re-enter the industry in an official capacity. The decision reflects a growing alignment between the Trump administration and the crypto industry, which continues to play an increasingly significant role in shaping the future of global finance.
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