Trump pardons convicted Binance crypto exec Changpeng Zhao
The top crypto exchange has positioned itself as a key booster for the Trump family's lucrative crypto venture
Changpeng Zhao, former chief executive officer of Binance, arrives at federal court in Seattle, Washington, US, last year. (David Ryder/Bloomberg via Getty Images)
President Donald Trump on Thursday pardoned convicted billionaire crypto executive Changpeng Zhao, the co-founder of Binance, in a step that showcased the ongoing retreat of the federal government on crypto regulation and enforcement.
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In late 2023, Zhao pled guilty to violating anti-money laundering laws following a three-year investigation by the Justice Department. He stepped down from serving as Binance's chief executive, though Zhao maintained a controlling stake in the crypto trading firm.
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The most popular exchange by volume, Binance has positioned itself as a close partner in the Trump family's crypto venture, World Liberty Financial. The White House now argues the Biden administration had overstepped in pushing a stiffer prison sentence for Zhao compared to what's mandated under federal sentencing guidelines.
“President Trump exercised his constitutional authority by issuing a pardon for Mr. Zhao, who was prosecuted by the Biden Administration in their war on cryptocurrency," White House Press Secretary Karoline Leavitt said in a statement.
Zhao ultimately served a four-month prison sentence and was released in September last year from a California correctional facility. "These actions by the Biden Administration severely damaged the United States’ reputation as a global leader in technology and innovation," Leavitt said. "The Biden Administration’s war on crypto is over."
The Wall Street Journal first reported the development. Binance did not immediately respond to a request for comment.
The Biden administration waged an extensive crackdown on digital assets, seeking to rein in a volatile industry associated with scams and money-laundering. The Securities and Exchange Commission filed a lawsuit against Binance in mid-2023 that accused it of mishandling customer funds and misleading U.S. regulators. The Trump administration dropped that lawsuit in May, saying it was "appropriate" to do so at the time.
Zhao is one of the crypto industry's richest men with an estimated net worth of $54 billion, according to the Bloomberg Billionaires index. He also maintains an enormous following of over ten million users on his personal X account. Zhao's pardon could pave the way for Binance to once again operate in the U.S. Binance has technically blocked U.S.-based users since June of 2019.
In May of this year, Binance accepted a $2 billion investment from a state-backed Emirati firm; the funds went towards a stablecoin developed by World Liberty Financial. Trump distanced himself from it at the time and said he didn't know anything about the investment.
But it's proven to be a lucrative partnership for the Trump family. The president's latest financial disclosure filing showed he reported a $57 million profit from World Liberty Financial.