Donald Trump pardons Binance founder Changpeng Zhao, convicted of money laundering; crypto giant reacts

US President Donald Trump has pardoned Binance founder Changpeng Zhao, the billionaire who built the world’s largest cryptocurrency exchange and later served prison time for compliance failures linked to money laundering and illicit activity.

The decision ends a months-long push by Zhao, known widely in the crypto world as “CZ”, to clear his record. The Binance founder has long been seen as one of the most influential figures in the digital asset space and a key supporter of the Trump family’s crypto ventures.

“Deeply grateful for today’s pardon and to President Trump for upholding America’s commitment to fairness, innovation, and justice,” Zhao wrote on social media on Thursday.

THE CASE AGAINST ZHAO

Zhao served a four-month sentence for violating the Bank Secrecy Act, becoming the first person ever jailed under the law, which requires financial institutions to verify customers’ identities and report suspicious transactions.

Prosecutors said Zhao’s violations were unprecedented, accusing Binance of facilitating more than 1.5 million illegal crypto trades worth nearly $900 million. Those transactions allegedly included dealings with sanctioned groups such as Hamas’ al-Qassam Brigades, al-Qaida, and Iran.

Judge Richard Jones, who oversaw the case, said Zhao’s refusal to comply with US banking rules allowed Binance’s explosive growth. Prosecutors cited Zhao telling employees, Better to ask for forgiveness than permission, when referring to the company’s approach to regulation.

“I failed here,” Zhao told the court during sentencing. “I deeply regret my failure, and I am sorry.”

Zhao’s rise is one of tech’s most striking rags-to-riches stories.

Born in rural China, he immigrated to Canada with his family after the 1989 Tiananmen Square crackdown. As a teen, he worked at McDonald’s before turning to tech in college.

He launched Binance in 2017, and within a few years, it had become a global powerhouse in digital finance.

WHITE HOUSE DEFENDS PARDON

White House Press Secretary Karoline Leavitt confirmed the pardon, saying the counsel’s office had thoroughly reviewed the request.

She accused the previous Biden administration of pursuing “an egregious oversentencing” and adopting a very hostile stance toward the crypto industry.

“President Trump wants to correct this overreach,” Leavitt said, drawing a clear contrast between the two administrations’ approaches to digital finance.

Trump’s move continues his pattern of using presidential clemency to aid political allies, public figures, and others convicted of controversial crimes.

Since taking office, the Trump administration has dropped several enforcement actions against crypto firms initiated under Biden and even dissolved a Justice Department unit focused on crypto-related crimes.

Trump and his sons have also embraced crypto. Their venture, World Liberty Financial, launched a dollar-backed stablecoin that gained early traction after an Abu Dhabi investment fund used $2 billion worth of the token to buy a stake in Binance.

Following news of Zhao’s pardon, the value of another Trump-linked token, World Liberty Finance’s secondary coin, surged sharply, outperforming every major cryptocurrency on Thursday, according to CoinMarketCap.

– Ends

With inputs from Associated Press

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