Michaela
President Donald Trump has reportedly been weighing the possibility of granting a pardon to Binance founder and former CEO Changpeng “CZ” Zhao, a move that would erase Zhao’s felony conviction and allow him to resume business activities in the United States without legal barriers.
Key points:
- President Trump is reportedly considering a pardon for Binance founder CZ, which would erase his felony conviction and allow him to resume U.S. business activities.
- Discussions in the White House are ongoing, with some advisers viewing Zhao’s case as weak, though others are cautious about optics due to Trump’s crypto ties.
- Zhao served a four-month prison term in 2024 for a single Bank Secrecy Act violation, and a pardon could reshape how U.S. authorities handle major crypto cases.
Financial journalist Charles Gasparino reported that discussions within the White House about a potential pardon for Zhao have intensified, citing sources familiar with the matter. According to Gasparino, several of Trump’s advisers view the case against the Binance founder as weak, arguing that it did not warrant a felony conviction or prison sentence.
“Trump, people close CZ say, is leaning toward a pardon (consider the source), which could set the stage for CZ’s return to the crypto exchange since he remains Binance’s largest shareholder,” Gasparino wrote in an X post.
Gasparino added that certain White House aides are cautious about the optics of a possible pardon due to the president’s crypto business connections, and noted that talks on the issue are still evolving.
In 2024, Zhao served a four-month prison term after pleading guilty to violations of U.S. anti-money laundering regulations. The case, pursued during President Joe Biden’s administration amid a wider regulatory crackdown on the crypto sector, also required Zhao to resign as Binance CEO and pay a $50 million personal fine, while Binance itself was penalized $4.3 billion as part of the settlement.
Additionally, Zhao responded to Gasparino’s report, thanking him for the coverage and calling it “great news” if White House discussions were accurate. He clarified that he had pleaded guilty to only a single violation of the Bank Secrecy Act (BSA). Gasparino remarked that receiving a prison sentence for a non-fraud offense was “insane.”
“I believe I am [the] only person to ever be sentenced to jail in US history for a single violation of BSA, with no other charges, no prior history,” Zhao wrote.
Prosecutors accused Binance of enabling transactions connected to sanctioned countries and illegal activity. However, U.S. District Judge Richard Jones noted Zhao’s cooperation, remorse, and previously clean record as mitigating factors, resulting in a significantly reduced sentence, much lighter than the 36 months initially sought by the Department of Justice.
If granted, the pardon could signal a broader shift in how U.S. authorities approach high-profile crypto cases, potentially influencing investor confidence and regulatory strategies across the industry.
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Michaela has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.
