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President Donald Trump has issued a pardon to Changpeng Zhao, the co-founder of cryptocurrency exchange Binance, who had previously pleaded guilty to charges relating to inadequate anti-money-laundering controls, the White House confirmed Thursday.
The pardon follows a broader pattern of Trump granting clemency to high-profile figures, including former New York Rep. George Santos and several crypto executives.
White House Press Secretary Karoline Leavitt described the pardon as a corrective measure against what she termed the Biden administration’s war on cryptocurrency.
“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,” Leavitt said.
She emphasized that Zhao faced no allegations of fraud or identifiable victims and criticized the prior administration’s handling of the case.
Background on Zhao’s guilty plea and Binance settlement
Zhao, who co-founded Binance in 2017, had previously pleaded guilty in November 2023 in Seattle federal court to charges related to violating the Bank Secrecy Act.
He admitted to failing to implement an effective anti-money-laundering program and to willfully violating US economic sanctions.
Federal prosecutors alleged that Zhao sought to profit from the US market without implementing the controls required under US law.
As part of the case, Binance itself pleaded guilty to conducting an unlicensed money-transmitting business, violating the International Emergency Powers Act, and conspiracy.
The company agreed to pay roughly $4.3 billion in penalties to resolve the matter.
Zhao, originally facing a three-year prison sentence requested by federal prosecutors, was sentenced in April 2024 to just four months in jail, reflecting the judge’s view that the recommended sentence was unusually harsh.
Leavitt said, “The Biden Administration sought to imprison Mr. Zhao for three years, a sentence so outside Sentencing Guidelines that even the Judge said he had never heard of this in his 30-year career.”
Impact on the cryptocurrency industry and Trump ventures
The pardon comes amid a period of heightened interest in cryptocurrency by the Trump family.
According to The Wall Street Journal, the Trump family’s crypto ventures have generated approximately $4.5 billion in revenue since the 2024 election, with Binance playing a supporting role in some of the family’s under-the-radar trading platforms.
Zhao joins a growing list of crypto executives granted clemency by Trump, including Silk Road founder Ross Ulbricht and employees of the BITMEX crypto exchange.
Analysts note that these pardons may signal a broader pro-crypto stance by the president, contrasting with the previous administration’s enforcement-heavy approach.
Leavitt also criticized the Biden administration, stating, “These actions by the Biden Administration severely damaged the United States’ reputation as a global leader in technology and innovation. The Biden Administration’s war on crypto is over.”
Binance, now the world’s largest cryptocurrency exchange, continues to face scrutiny regarding its compliance practices, although Zhao’s pardon removes the personal legal risks he previously faced.
Observers expect the move to influence both public perception of crypto enforcement in the US and the regulatory debate as the industry navigates increased government oversight.
Zhao’s legal and professional legacy
Despite legal challenges, Zhao remains a prominent figure in the cryptocurrency sector.
His leadership helped Binance grow into a global trading platform with millions of users worldwide.
While the pardon addresses his criminal conviction, the company itself remains responsible for ongoing compliance and regulatory obligations.
The clemency underscores the interplay between politics, technology, and finance, as well as the high stakes involved in regulating a rapidly evolving crypto ecosystem.
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