Binance co-founder Changpeng Zhao granted pardon by Trump administration

Binance co-founder Changpeng Zhao has received a pardon from President Donald Trump after he went to jail for failing to safeguard the world’s largest crypto exchange against money laundering. 

“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,” said White House spokeswoman Karoline Leavitt. 

The move marks the latest act of clemency the White House has granted to a crypto entrepreneur, underscoring how the Trump administration has positioned itself as a friend of the industry.  

Zhao served a four-month sentence in 2024 after pleading guilty to failing to implement adequate anti-money laundering measures at Binance. The guilty plea was part of a broader deal struck with the US government, which included a $4.3 billion settlement with Binance. 

 

According to authorities at the time, the lack of safeguards under Zhao’s leadership allowed figures associated with the military wing of Hamas, hackers and money launderers to trade on the exchange. The lack of proper compliance also led to some customers trading with residents of Iran in contravention of US sanctions. Between 2018 and 2022, Binance processed at least 1.1 million transactions that violated US sanctions, worth about $898 million, according to the government’s case.  

Zhao’s 2023 plea deal forced him to step down as Binance CEO but he was able to hold on to his controlling stake in the company, which soared in value immediately after Trump’s presidential victory. Zhao has a net worth of $54.5 billion, according to the Bloomberg Billionaires Index. 

Binance Coin, a cryptocurrency also known as BNB that’s linked to the firm Zhao founded, jumped on news of the pardon. 

Trump Crypto Ventures 

Bloomberg has previously reported that World Liberty Financial Inc., one of the Trump family’s crypto ventures, had discussed doing business with Binance. Zhao met with Steve Witkoff, co-founder of World Liberty, and the president’s Middle East envoy, after he was released from US custody, Bloomberg reported. 

Trump has used his clemency authority to unwind several prosecutions that were hallmarks of the former administration’s crypto enforcement agenda. He pardoned Silk Road founder Ross Ulbricht, who was serving life in prison for allowing criminal activity to flourish on the dark web marketplace. The president also pardoned the founders of crypto exchange BitMEX.  

In early April, the Justice Department disbanded its National Cryptocurrency Enforcement Team and vowed to close existing cryptocurrency investigations that don’t align with the administration’s priorities. The moves reflect the administration’s focus on toning down crypto enforcement, particularly regarding exchanges, mixing services and wallet providers.