The White House is reportedly considering a presidential pardon for Changpeng Zhao, the founder and former CEO of Binance, according to sources familiar with the matter. Discussions have reportedly intensified within the Trump administration regarding the possibility of clemency for Zhao, known in the crypto world as "CZ".
Zhao's legal troubles stem from a 2023 guilty plea to a felony charge related to violations of the Bank Secrecy Act (BSA). He admitted to failing to maintain an effective anti-money laundering (AML) program at Binance. As part of the resolution, Zhao stepped down as CEO and paid a $50 million fine. Binance, the world's largest cryptocurrency exchange which Zhao founded in 2017, also agreed to pay $4.3 billion in fines. Zhao served a four-month prison sentence, being released in September 2024.
According to Fox Business Senior Correspondent Charles Gasparino, many within Trump's inner circle view Zhao's case as politically motivated. Some believe the charges were disproportionate and that the case was a result of the prior administration's crackdown on the crypto industry. Some advisors reportedly believe the case against Zhao was weak and did not merit a felony conviction or jail sentence.
A potential pardon for Zhao is not without its complications. Some within the White House are concerned about the optics, given the Trump family's increasing involvement in the crypto space. Concerns have been raised about potential conflicts of interest if the president grants clemency to Zhao while his family members pursue crypto ventures. Despite these concerns, President Trump is reportedly "leaning toward a pardon".
Zhao has confirmed that he applied for a pardon from President Trump following his release from prison last year. In response to reports of a potential pardon, Zhao stated, "Great news if true," but clarified that there were no fraud charges against him. He emphasized that he pleaded guilty to a single violation of the BSA, for which he believes he is the only person in U.S. history to be sentenced to jail without any other charges or prior history.
If a pardon is granted, it could pave the way for Zhao's return to Binance in a significant role. Despite his legal issues, Zhao remains Binance's largest shareholder. A pardon could restore his standing in the crypto industry and allow him to re-engage with regulated financial institutions.
The decision regarding a pardon for Zhao could come before the end of the year. However, it is noted that clemency discussions often take longer than expected. The crypto world is closely watching the situation, as a pardon could signal a shift in the U.S. government's approach to crypto regulation and its openness to the Bitcoin business.
