Michaela
President Donald Trump has granted a pardon to Binance founder Changpeng “CZ” Zhao following widespread lobbying efforts and public appeals asserting his innocence, signaling Trump’s apparent sympathy toward those arguments.
Key points:
- President Donald Trump granted a full pardon to Binance founder Changpeng “CZ” Zhao, ending speculation and signaling a softer stance toward crypto.
- The move follows Zhao’s four-month prison term and comes amid claims from his legal team that his conviction involved no fraud, victims, or money laundering.
- The pardon is widely seen as a turning point in U.S. crypto policy, marking what Trump’s team calls “the end of the Biden Administration’s war on crypto.”
According to a report by The Wall Street Journal, sources revealed that President Trump signed the pardon on Wednesday. Speaking at a press conference the following day, Trump explained that his decision was influenced by strong public backing, noting that “a lot of people recommended” Zhao and that “people say he wasn’t guilty of anything.”
White House Press Secretary Karoline Leavitt announced Thursday that President Trump exercised his constitutional authority in granting a pardon to Zhao, who had been prosecuted under the Biden administration’s crackdown on cryptocurrency. Leavitt added that the move signaled “the end of the Biden Administration’s war on crypto.”
In 2024, the Binance founder completed a four-month prison sentence after pleading guilty to breaching U.S. anti-money laundering laws. The case, brought under President Joe Biden’s administration during a broader regulatory push against the crypto industry, also led to Zhao stepping down as Binance CEO and paying a $50 million personal fine. Binance, meanwhile, faced a $4.3 billion penalty as part of the settlement.
Trump’s decision to pardon Zhao follows recent speculation over whether the president would intervene in the case. However, sources indicated that his administration had initially approached the matter with caution, aware of potential scrutiny given Trump’s own ties to the cryptocurrency industry.
Teresa Goody Guillén, Zhao’s legal counsel, stated in a post on X that she believes President Trump’s decision to pardon Zhao was justified, noting that Zhao had faced only a single charge related to maintaining an ineffective compliance program. “NO fraud, NO victims, NO criminal history. NO money laundering,” Guillén wrote.
“CZ is the first and only known first-time offender in U.S. history to receive a prison sentence for this single, non-fraud-related charge,” Guillén added. “The judge found NO evidence that he knew of any illicit transactions and that it was reasonable for him to believe there were no illicit funds on the platform.”
Zhao’s pardon marks another high-profile moment in the evolving relationship between U.S. political power and the cryptocurrency industry, signaling that digital asset regulation, and accountability, will likely remain at the forefront of national debate as the sector continues to mature.
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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.
