Trump Issues Pardon to Binance Founder Changpeng Zhao

US President Donald Trump has granted a pardon to Changpeng Zhao, the founder of Binance, following Zhao’s guilty plea to charges of money laundering. A White House official confirmed the decision on Thursday, marking a significant turn in Zhao’s legal troubles since his resignation as CEO of the world’s largest cryptocurrency exchange in 2023.

In a statement, White House Press Secretary Karoline Leavitt highlighted that Trump utilized his constitutional powers to issue the pardon. Leavitt noted that Zhao was prosecuted under the Biden Administration’s aggressive stance on cryptocurrency regulations. This pardon arrives after a tumultuous period for Zhao and Binance, which included a hefty settlement of $4.3 billion to resolve related allegations.

Legal Troubles and Consequences

Zhao’s legal issues began when he pleaded guilty to money laundering charges in 2023. He subsequently stepped down as CEO of Binance. In April 2024, he received a sentence of four months in prison, a decision that was notably less severe than the three-year sentence prosecutors had sought. The US Securities and Exchange Commission (SEC) had levied 13 charges against both Zhao and Binance, accusing them of serious violations, including the improper handling of customer assets linked to Zhao’s entity, Sigma Chain.

This legal saga had immediate repercussions on the cryptocurrency market, causing Bitcoin to plummet by nearly 2 percent in just a few minutes in response to the news.

Implications of the Pardon

The pardon may open doors for Binance to resume operations in the United States, a critical market for cryptocurrency exchanges. According to Axios, Binance had been lobbying for over a year for the pardon, suggesting a concerted effort to regain a foothold in the US market.

As the cryptocurrency landscape continues to evolve, Zhao’s pardon stands as a pivotal moment that could influence regulatory approaches and the operational capabilities of cryptocurrency platforms moving forward.