Key Points
- President Trump has pardoned Binance founder Changpeng “CZ” Zhao.
- Zhao recently served prison time for failing to stop money laundering on his platform. The pardon comes as Trump and Zhao have developed close financial ties.
- Trump recently launched his own crypto venture, which has a deal involving Binance.
- The White House claimed the original prosecution of Zhao was politically motivated.
President Donald Trump has pardoned Changpeng “CZ” Zhao, the founder of the world’s largest cryptocurrency exchange, Binance. Zhao had recently served prison time after pleading guilty to failing to prevent criminals from using his platform for money laundering.
The pardon is a stunning development and comes as Zhao and Trump have become increasingly intertwined financially. Zhao has deep ties to World Liberty Financial, a new crypto venture launched by President Trump and his sons in September.
Trump’s recent financial disclosure report shows he made over $57 million last year from this new crypto company. In a further sign of the close relationship, World Liberty Financial recently announced that an investment fund from the United Arab Emirates would invest $2 billion in its new stablecoin to buy a stake in Binance.
Zhao had previously asked Trump for a pardon, and on Thursday, the White House defended the decision. Press Secretary Karoline Leavitt claimed the previous administration had prosecuted Zhao out of a “desire to punish the cryptocurrency industry.” She also noted that there were “no allegations of fraud or identifiable victims.” However, Zhao had admitted in court that he had failed to maintain an adequate anti-money laundering program.
“I failed here,” Zhao told the court when he pleaded guilty. “I deeply regret my failure, and I am sorry.”
