President Donald Trump pardoned Changpeng Zhao, the co-founder of cryptocurrency exchange Binance, this week in a move the White House framed as a response to what it called the Biden administration’s “war on cryptocurrency.”
Zhao, also known as “CZ”, pleaded guilty to enabling money laundering and agreed to step down as the CEO of Binance as part of a $4.3 billion settlement with the Justice Department in 2023. He served four months in prison.
“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,” White House Press Secretary Karoline Leavitt said in a statement.
“In their desire to punish the cryptocurrency industry, the Biden Administration pursued Mr. Zhao despite no allegations of fraud or identifiable victims,” Leavitt said.
Trump, who has touted himself as a crypto-friendly president, signed a pardon for the crypto exchange founder on Tuesday, according to the Justice Department’s website.
Both Binance and Zhao had sought a pardon from Trump.
In a statement on X, Zhao said he was “deeply grateful” for the pardon and Trump’s “commitment to fairness, innovation, and justice.”
“Will do everything we can to help make America the Capital of Crypto and advance web3 worldwide,” Zhao added.
Despite having previously called Bitcoin a “scam,” Trump later became intensely interested in crypto – even campaigning on becoming “the crypto president.”
He kept his promise as soon as he was inaugurated, even launching a joint crypto project with First Lady Melania Trump right before he was sworn in.
The administration has appointed crypto-friendly regulators, reduced regulations around the digital currency and disbanded the Justice Department team tasked with investigating crypto crimes.
At the same time, the Trump family has also benefited from crypto investments. Members of the Trump family, through an umbrella company, own more than half of World Liberty Financial, a cryptocurrency company.
Zhao’s guilty plea was part of a multi-billion-dollar settlement with the DoJ, which had been investigating Binance for violating the Bank Secrecy Act, failing to register as a money transmitting business and violating the International Emergency Economic Powers Act.
Federal prosecutors claimed Binance neglected to follow legal obligations, allowing terrorists, cybercriminals and child abusers to move money through its platform.
Zhao pleaded guilty to failing to maintain an effective anti-money laundering program, in violation of the Bank Secrecy Act, and resigned. He was sentenced to four months in prison and served his sentence.
Zhao co-founded Binance in 2017. It has become the largest cryptocurrency exchange by daily volume.
Reacting to his pardon, Zhao tweeted: “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. (Still in flight, more posts to come.) Onwards. “
Democratic senator Elizabeth Warren said the pardon was evidence of “corruption” by the president.
In a statement she said: “First, Changpeng Zhao pleaded guilty to a criminal money laundering charge. Then he boosted one of Donald Trump’s crypto ventures and lobbied for a pardon. Today, Donald Trump did his part and pardoned him.
“If Congress does not stop this kind of corruption in pending market structure legislation, it owns this lawlessness.”
