On Thursday, President Donald Trump granted a pardon to the founder of the largest cryptocurrency exchange globally.
The White House issued a statement saying, “President Trump utilized his constitutional powers by pardoning Mr. Zhao, who faced prosecution from the Biden administration concerning the virtual currency conflict. The conflict against virtual currencies is concluded.”
Qiao Changpeng stepped down as CEO of Binance in late 2023 after admitting to one count of failing to uphold an anti-money laundering program, alongside a payment of $4.3 billion to resolve associated accusations. He received a four-month prison sentence.
Chao, commonly known as CZ, ranks among the wealthiest individuals globally and is a prominent figure in the cryptocurrency industry. He established Binance as the largest cryptocurrency exchange; however, operations in the United States are prohibited following his guilty plea in 2023.
The pardon from President Trump marks a significant triumph for Chao and Binance after a period of lobbying and speculation. It also signifies a shift towards reduced scrutiny of the cryptocurrency sector by the Trump administration, even as the president and his family develop their own crypto business empire worth billions.
A spokesperson from Binance commented, “Today brings remarkable news regarding CZ’s pardon. We express our gratitude to President Trump for his guidance and dedication to making the United States the leading hub for cryptocurrency.”
During a press interaction on Thursday, President Trump addressed the pardon, minimizing Zhao’s offenses and asserting that he had no previous relationship with the cryptocurrency mogul.
In response to a query from a reporter about the decision, President Trump remarked, “Are you referring to the crypto individual? Many assert that he did nothing wrong. They claim his actions weren’t even criminal. It was persecution from the Biden administration, leading me to pardon him upon request from a number of esteemed individuals.”
Representatives from the Trump family’s crypto venture have discussed acquiring a stake in The Wall Street Journal, which is Binance’s U.S. arm. This was reported earlier this year. Mr. Zhao claimed that he was negotiating an agreement in return for clemency.
“Fact: I have never discussed my arrangement with Binance US with…well, anyone,” Zhao stated in a post on X in March. “Serious criminals wouldn’t be concerned about pardons,” he added.
However, Binance has significantly contributed to the growth of the Trump family’s World Liberty Financial cryptocurrency enterprise. Earlier this year, when Binance entered into a $2 billion agreement with a UAE investment fund, the payment was made using a cryptocurrency developed by World Liberty Financial. This enhanced the legitimacy of the Trump family’s digital currency and proved to be a highly profitable move for Binance.
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In May, Zach Witkoff, the founder of the Trump family’s cryptocurrency entity, expressed at a press conference in Dubai to unveil the deal: “We appreciate the confidence that MGX and Binance have placed in us.”
A group of Democratic senators, including Elizabeth Warren, the ranking member of the Senate Banking, Housing, and Urban Affairs Committee; issued a statement after the May agreement, expressing concerns that Binance and the Trump administration may be seeking a deal that enriches the president.
“As the administration eases oversight of industries violating money laundering and sanctions regulations, it is not surprising that Binance, which has acknowledged prioritizing its growth and profits over compliance with U.S. law, would seek to eliminate the supervision mandated by the settlement,” the senators remarked.
The lawsuit by the U.S. Department of Justice against Binance alleges that the company neglected to report over 100,000 suspicious transactions to law enforcement, including those involving U.S.-designated terrorist entities such as Al Qaeda and Hamas. The Securities and Exchange Commission filed a lawsuit against the company in 2023, but dropped the case shortly after President Trump assumed office.
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