US President Donald Trump has granted a full pardon to Changpeng Zhao, the founder of the cryptocurrency exchange Binance, the White House announced.
Zhao, known as “CZ,” resigned as Binance chief in 2023 after the company pleaded guilty to failing to maintain an effective anti-money laundering programme and paid a US$4.3 billion penalty.
The Biden administration had prosecuted Zhao, with White House press secretary Karoline Leavitt describing it as part of a “war on cryptocurrency.”
Zhao, a Canadian citizen born in China, personally paid a US$50 million fine and served nearly four months in prison for the same offence.
He retained his stake in Binance, while another executive took over as chief executive, Reuters reported.
In a post on social media platform X, Zhao said he was “deeply grateful for today’s pardon and to President Trump for upholding America’s commitment to fairness, innovation, and justice,”
adding:
“Will do everything we can to help make America the Capital of Crypto.”
US authorities had said in 2023 that Binance failed to report suspicious transactions involving organisations including Hamas and al Qaeda, as well as websites dedicated to child sexual abuse materials.
The pardon could allow Zhao to return to the business he co-founded in 2017 and potentially support Binance’s expansion in the US.
The US Constitution grants the president broad powers to issue pardons or commutations for federal offences, historically often exercised at the end of a term, though there is no requirement to wait.
During his second term, Trump has issued multiple pardons to crypto executives and entrepreneurs, as well as others convicted of white-collar crimes.
Democratic Senator Elizabeth Warren criticised the pardon, noting:
“First, Changpeng Zhao pleaded guilty to a criminal money laundering charge. Then he boosted one of Donald Trump’s crypto ventures and lobbied for a pardon. Today, Donald Trump did his part and pardoned him.”
Featured image credit: Edited by Fintech News Singapore, based on image by evening_tao via Freepik
