Changpeng Zhao, the founder and former CEO of Binance, received a pardon from U.S. President Donald Trump on Wednesday. The pardon came after Binance engaged in extensive and expensive lobbying efforts in Washington. Zhao, often referred to as "CZ," had previously stepped down as Binance CEO in November 2023 as part of an agreement with U.S. authorities. He was sentenced to four months in prison for violating U.S. anti-money laundering (AML) laws and served his time in 2024. In addition to Zhao's sentence, Binance paid a $4.3 billion penalty for failing to maintain an effective anti-money laundering program.
According to Politico, Binance's lobbying efforts included payments to individuals with close ties to the Trump administration. Ches McDowell, a lobbyist and hunting partner of Donald Trump Jr., was hired by Binance in late September to lobby the White House and Treasury Department on financial policy issues and "administrative relief". McDowell's firm, Checkmate Government Relations, received $450,000 from Binance for its work. Politico reports that McDowell's firm, which opened its Washington office earlier this year, generated $7.1 million in revenue over the past three months.
In addition to McDowell, Binance and Zhao also hired crypto lawyer Teresa Goody Guillén in February. Guillén, who was considered for SEC Chair by Trump, received $290,000 in fees from Binance and Zhao's team this year.
White House Press Secretary Karoline Leavitt stated that President Trump's pardon reflected his belief that Zhao had been unfairly "targeted by the Biden Administration in their war on cryptocurrency". Some critics have argued that the pardon is a sign of the Trump administration's increasingly friendly stance toward the crypto industry, especially with Trump and his family building their own crypto empire. Massachusetts Senator Elizabeth Warren stated that Zhao "financed President Trump's stablecoin and lobbied for a pardon".
Binance has been a "key supporter" of the Trump family's crypto venture, World Liberty Financial. A Financial Times investigation found that the Trump family's crypto businesses have generated approximately a billion dollars in pre-tax profit over the past 12 months.
In a statement, Binance expressed gratitude to President Trump for his "leadership and for his commitment to make the US the crypto capital of the world". Zhao also posted on X, stating he was "deeply grateful" for the pardon and would "do everything we can to help make America the Capital of Crypto and advance web3 worldwide".
The pardon may allow Zhao to return to an executive role at Binance, where he remains the largest shareholder. Binance's current CEO, Richard Teng, stated that the company stands ready to support policymakers in the U.S. and globally in their efforts to create a more open and accessible financial future.
The pardon of Zhao follows other controversial moves by President Trump, including pardons for individuals convicted in the January 6, 2021, attack on the U.S. Capitol and the commutation of the sentence of former Republican lawmaker George Santos. The pardon has sparked debate about crypto regulation and executive power. Some believe this marks a shift in regulatory approach towards the digital asset industry under the current administration.
