President Donald Trump pardoned Changpeng Zhao, founder Binance, which served a prison sentence for failing to stop criminals using the platform to transfer money linked to child sexual abuse, drug trafficking and terrorism..
This pardon comes after months of lobbying by the company and Zhao's role in securing huge benefits for Trump Family Cryptocurrency Venture. Signed on Wednesday this is the last one in recent wave from controversial pardons issued by the President.
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Zhao, who pleaded guilty in 2023, served four months in prison. According to Wall Street JournalProsecutors said illegal operations under his supervision caused “significant harm to U.S. national security.”
Now, with Trump's pardon, the world's largest cryptocurrency exchange can return to US operations, clearing a major legal hurdle.
White House press secretary Caroline Leavitt called the move a rebuke of the Biden administration.
“President Trump exercised his constitutional authority to pardon Mr. Zhao, who was prosecuted by the Biden administration for his war on cryptocurrency,” she said in a statement to NBC News and various other retail outlets. “In its desire to punish the cryptocurrency industry, the Biden administration targeted Mr. Zhao despite no allegations of fraud or identifiable victims. The Biden administration's war on cryptocurrency is over.”
The pardon comes after Binance spent nearly a year trying to secure a release. Earlier this year company hired popular lobbyist Chas McDowell promoted the case, and Zhao filed a formal petition for clemency.
After Trump's election Binance supported The Trump family's crypto venture, World Liberty Financial, has generated more revenue than their traditional real estate portfolio over the past year. Binance also helped launch the World Liberty USD1 cryptocurrency stablecoin with a $2 billion investment from an outside investor earlier this year.
Trump family representatives even discussed obtaining a financial stake in Binance's US operations.
“Deeply grateful for today’s pardon and to President Trump for supporting America’s commitment to integrity, innovation and justice,” Zhao wrote on X after the announcement. “Let's do everything we can to help America become the crypto capital and promote web3 around the world.”
The pardon could also ease pressure on Binance from US regulators. The company was under Justice Department scrutiny to enforce financial crimes laws and faced a record $4.3 billion fine after investigators found it had become a money laundering hub for sanctioned gangs and criminal organizations.
Binance could benefit in other ways as well. The company has struggled to regain its footing in the US, but with Zhao's pardon it now has an easier path to resuming operations in the country, potentially boosting the Trump family's cryptocurrency venture World Liberty.
Zhao's pardon is the latest in a series of high-profile pardons that have drawn widespread criticism from Democrats and ethics watchdogs. In recent months, Trump also pardoned reality TV stars Todd and Julie Chrisley, rapper Lil Wayneand former member of the New York House of Representatives. George Santos.
Trump's increasingly controversial pardon decisions continue to highlight how the president's political influence and family business interests are increasingly intertwined. It also raises questions about how presidents can use pardon powers to reward allies as well as shape industries that affect their personal wealth.
