In a surprising move, U.S. President Donald Trump announced that he had granted a pardon to Changpeng “CZ” Zhao, the former CEO of Binance. Zhao, who had been serving a prison sentence since 2024, pled guilty to failing to maintain an effective anti-money laundering program. The pardon comes amid ongoing tensions between the Biden administration and the crypto world. According to Trump, Zhao was “persecuted” and had significant support from multiple individuals, claiming that he was not guilty of any wrongdoing.
Trump made the announcement during a press briefing, where he emphasized the widespread backing for Zhao’s case. “He was recommended by a lot of people,” Trump told reporters. “A lot of people say he wasn’t guilty of anything.” The pardon clears Zhao of the charges, despite the fact that he had been fined $50 million and Binance had agreed to pay $4.3 billion in a settlement related to the violation.
Zhao had been sentenced to four months in prison and was released earlier in 2024. His guilty plea in 2023 had raised concerns about the crypto industry’s regulatory environment and its interactions with U.S. authorities. Despite the legal consequences, Trump’s decision to pardon him places a spotlight on the continuing divide between political factions and their stance on crypto regulations.
A Controversial Pardon with Strong Support
During the briefing, Trump was asked by CNN’s Kaitlan Collins about the details of the pardon, and he reacted with sharp criticism, dismissing her question as “fake news.” He further clarified that he did not personally know Zhao but made the decision based on recommendations from influential figures who believed in Zhao’s innocence. The president also noted that many of these supporters argued that Zhao’s actions did not constitute a crime.
Trump’s controversial decision to grant clemency to Zhao mirrors previous high-profile pardons he has issued, including the pardon of Ross Ulbricht, the creator of the Silk Road. However, this particular pardon has stirred additional debate, particularly in the wake of other crypto-related legal battles.
Zhao’s case parallels the ongoing saga of Sam Bankman-Fried, the founder of FTX, who has also claimed that his arrest was politically motivated after he shifted his political donations. While Bankman-Fried faces a prison sentence of nearly 25 years, the differing outcomes in their respective cases highlight the complexities of the U.S. legal system and its approach to the cryptocurrency industry.