Key Takeaways
- President Donald Trump pardoned Binance founder Changpeng Zhao, allowing him to potentially retake control of the crypto exchange
- Zhao was sentenced to 4 months prison for money laundering violations at Binance
- The pardon follows intense lobbying and raises questions about political connections
- Binance paid over $4 billion in fines while Zhao paid $50 million personally
President Donald Trump has granted a presidential pardon to Changpeng Zhao, the convicted founder of cryptocurrency exchange Binance. The move could allow Zhao to resume direct control of the world’s largest crypto platform despite his recent money laundering conviction.
White House press secretary Karoline Leavitt announced the pardon, stating Trump acted to correct “overreach” by the Biden administration. “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,” Leavitt said.
Background of the Case
Zhao was sentenced to four months in prison after pleading guilty to enabling money laundering at Binance. The United States ordered Binance to pay more than $4 billion in fines and forfeiture, while Zhao agreed to pay $50 million personally.
In 2023, then-Attorney General Merrick Garland stated:
“Binance became the world’s largest cryptocurrency exchange in part because of the crimes it committed — now it is paying one of the largest corporate penalties in U.S. history.”
Then-Treasury Secretary Janet Yellen said the company’s “willful failures allowed money to flow to terrorists, cybercriminals, and child abusers through its platform.”
Political Connections and Lobbying
The pardon follows extensive lobbying efforts connected to the Trump family. Binance hired lobbyist Charles McDowell in September, a friend of Donald Trump Jr. McDowell’s firm disclosed receiving $450,000 from Binance for one month’s work, including lobbying on “executive relief” matters.
Binance has close ties with World Liberty Financial, which has administered Trump family crypto projects generating over $4 billion, according to Wall Street Journal reports.
World Liberty Financial stated it “stands with the crypto industry in applauding today’s news” but claimed “no role in the clemency process.”
Reactions and Controversy
Zhao expressed gratitude on social media:
“Deeply grateful for today’s pardon and to President Trump for upholding America’s commitment to fairness, innovation, and justice. Will do everything we can to help make America the Capital of Crypto and advance web3 worldwide.”
Binance echoed the sentiment:
“We thank President Trump for his leadership and for his commitment to make the U.S. the crypto capital of the world.”
However, Democratic senators had previously raised concerns about potential influence. Senators Elizabeth Warren, Dick Durbin and Richard Blumenthal wrote to the White House in May after Zhao revealed he had “applied for a presidential pardon,” warning about “inappropriate political and financial influence.”
Broader Context
Zhao ranks as the 31st-wealthiest person globally with nearly $55 billion, according to Bloomberg. The pardon represents another in Trump’s series of high-profile clemency actions, following pardons for reality stars Todd and Julie Chrisley, former Illinois Gov. Rod Blagojevich, hip-hop star Lil Wayne, former Rep. George Santos, and BitMEX co-founders.
Trump has increasingly aligned with crypto interests during the 2024 election cycle, hosting events for supporters of his “meme coin” and backing industry-friendly policies.
