Liv McMahonTechnology reporter
ReutersUS President Donald Trump pardoned Changpeng Zhao, the founder of the world's largest cryptocurrency exchange Binance.
Zhao, also known as “CZ”, was sentenced to four months' imprisonment in April 2024 after pleading guilty to violating US money laundering laws.
Binance also pleaded guilty and was ordered to pay $4.3 billion (£3.4 billion) after a US investigation found it helped users circumvent sanctions.
The pardon has renewed debate over the White House's support for the cryptocurrency industry as the Trump family's own investment in the industry has increased.
White House press secretary Caroline Leavitt called Zhao's prosecution under the Biden administration part of the “war on cryptocurrency,” pushing back against critics who said the decision appeared to be motivated by Trump's personal financial interests.
“This case has been over-investigated by the Biden administration,” she said, adding that the case had been “carefully reviewed.” “So the president wants to correct this abuse of injustice by the Biden administration, and he has exercised his constitutional authority to do so.”
Binance spent nearly a year pardoning its former boss, who served a four-month prison sentence in September 2024. The WSJ reported this on Thursday..
His election campaign began with Trump releasing his own coin. shortly before his inauguration in Januarypromised to take a friendlier approach to the industry than his predecessor.
Since then, he has relaxed regulations, sought to create a national cryptocurrency reserve and pushed to make it easier Americans can use their retirement savings to invest in digital assets.
Zhao, who will step down as CEO of Binance in 2023, wrote on social media Thursday that he is “deeply grateful for today's pardon and President Trump for supporting America's commitment to fairness, innovation and justice.”
The pardon removes restrictions that prevented Zhao from engaging in financial ventures, but it is unclear whether it will change his standing with U.S. regulators or his ability to directly lead Binance.
In a statement, Binance called the decision “incredible news.”
The Cayman Islands-based exchange remains the world's most popular platform for buying and selling cryptocurrencies and other digital assets.
He did not respond to further questions about the conflict of interest claims.
Before the pardon, Zhao's companies collaborated with firms linked to Donald Trump on new digital currency projects, including Dominari Holdings, where his sons serve on the board of advisors and which is based in Trump Tower.
The Wall Street Journal also previously reported that representatives of the Trump family, which has its own crypto firm, World Liberty Financial, recently held talks with Binance.
The Trump administration previously dropped a fraud case against crypto entrepreneur Justin Sun following his investment in the Trump family's cryptocurrency firm, World Liberty Financial.
He also pardoned the founders of cryptocurrency exchange BitMex and Ross Ulbricht, the founder of Silk Road, a darknet marketplace known as a drug-trafficking hotspot.
Palantir co-founder Joe Lonsdale wrote on social media that he loves Trump but was given “horrible advice” about the pardon.
“It makes it seem like there is massive fraud going on around him in this area,” he said.
Democratic Senator Elizabeth Warren called the decision “a kind of corruption” in a statement.
Asked about the decision to pardon Zhao on Thursday, Trump appeared unsure who he was.
“Are you talking about the crypto guy?” he asked, later saying he was pardoned “at the request of many good people.”
When US officials announced Binance's guilty plea in 2023, they said Binance and Zhao were responsible for “willful violations” of US laws that compromised the financial system and national security.
“Binance turned a blind eye to its legal obligations in pursuit of profits,” said then-Treasury Secretary Janet Yellen.
“His deliberate failures allowed money to flow to terrorists, cybercriminals and child abusers through his platform.”
Zhao stepped down as Binance CEO as part of the resolution of the case, writing at the time that resigning was “the right thing to do.”
“I made mistakes and I have to take responsibility.” He said.
Reporting contributed by Bernd Debussmann Jr.
