President Donald Trump has granted a pardon to Changpeng Zhao, the founder of Binance, the world’s largest cryptocurrency exchange. Zhao had previously served time in prison for failing to comply with regulations related to money laundering and illicit activities. This decision follows Zhao’s efforts to clear his record, as he is a prominent figure in the digital asset space and a supporter of the Trump family’s cryptocurrency ventures.
Expressing gratitude for the pardon, Zhao took to social media to thank President Trump for upholding principles of fairness, innovation, and justice. The pardon comes after Zhao served a four-month sentence for violating the Bank Secrecy Act, the first person to be jailed under this law. Prosecutors accused Binance of facilitating over 1.5 million illegal cryptocurrency trades totaling nearly $900 million, including transactions with sanctioned groups like Hamas, al-Qaida, and Iran.
During the sentencing, Judge Richard Jones highlighted Zhao’s noncompliance with banking regulations as a catalyst for Binance’s rapid growth. Zhao admitted his failure in court, expressing deep regret and apologizing for his actions. Zhao’s journey from rural China to founding Binance is considered a remarkable success story in the tech industry.
The White House defended the pardon, with Press Secretary Karoline Leavitt stating that the counsel’s office thoroughly reviewed the request. She criticized the previous Biden administration for what she termed as an excessive sentence and a hostile stance towards the crypto industry. The move by President Trump aligns with his past use of clemency to assist political allies and figures involved in controversial cases.
Since assuming office, the Trump administration has reversed enforcement actions against crypto firms initiated under Biden and disbanded a Justice Department unit focusing on crypto-related crimes. Trump and his sons have shown support for cryptocurrencies, with their venture, World Liberty Financial, launching a stablecoin that gained traction after an Abu Dhabi fund invested $2 billion in Binance using the token.
Following the news of Zhao’s pardon, the value of World Liberty Finance’s secondary coin, a token linked to Trump, surged significantly, outperforming major cryptocurrencies according to CoinMarketCap data. This development indicates the impact of political decisions on the cryptocurrency market.