Zhao was arrested in 2023 for allegedly violating the U.S. Bank Secrecy Act and enabling illegal financial transactions. In April 2024, he received a four-month prison sentence, which he has already served. It is worth noting that Binance paid a substantial fine of $4.3 billion in connection with the case.
White House Press Secretary Caroline Levitt described Trump’s pardon as marking the “end of the Biden administration’s war on the cryptocurrency industry.” Zhao, in turn, stated that he would support the development of the cryptocurrency sector in the U.S. following the pardon.
This pardon is part of former President Donald Trump’s ongoing policy of granting clemency to individuals in the cryptocurrency and technology sectors. Previous pardons included the founders of BitMEX, the founder of Nikola, and Ross Ulbricht, the creator of the Silk Road platform. Additionally, Zhao is closely connected to Trump’s family-run cryptocurrency venture, World Liberty Financial.
However, some critics argue that Trump’s move is aimed at strengthening his and his family’s cryptocurrency interests. They contend that reports on Binance’s alleged illegal activities are incomplete and that such a pardon could weaken legal oversight. Nonetheless, Changpeng Zhao’s pardon is seen as a significant step that could influence U.S. cryptocurrency policy.
