The White House said President Donald Trump pardoned Changpeng Zhao, who created the world’s largest cryptocurrency exchange, Binance. Zhao pleaded guilty to enabling money laundering in 2023.
During his time as CEO, his company was used to move money connected to child sex abuse, drug trafficking and terrorism. Zhao had previously asked Trump for a pardon.
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He is also connected to World Liberty Financial, a cryptocurrency venture Trump’s sons Eric and Donald Jr. started in September. The president’s most recent financial disclosure report revealed he made more than $57 million from the company in 2024.
Why did Trump say he pardoned Zhao?
White House press secretary Karoline Leavitt released a statement following the pardon. In the statement, she said the Biden administration prosecuted Zhao to “punish the cryptocurrency industry.”
Leavitt said there were “no allegations of fraud or identifiable victims.” However, Zhao admitted to his crimes.
“I made mistakes, and I must take responsibility. This is best for our community, for Binance, and for myself,” Zhao wrote after he resigned from Binance in 2023.
What did Zhao do?
In 2023, the Department of Justice charged Zhao with violating the Bank Secrecy Act after he failed to “implement an effective anti-money-laundering program.” He later pleaded guilty and stepped down as CEO as part of Binance’s $4.3 billion settlement with the Justice Department.
The judge sentenced Zhao to four months in prison, and he was released in September 2024.
In August, The New York Times reported that Zhao was campaigning for a pardon from the Trump administration.
What is Binance?
Binance is the world’s largest cryptocurrency exchange and was founded by Zhao in 2017.
In March, The Wall Street Journal reported that World Liberty Financial was in talks with Zhao for Binance to acquire a stake in the business. The publication reported that Zhao was seeking a pardon to make it easier for Binance to return to U.S. markets.
The company was banned in the U.S. due to regulatory concerns. However, the company launched Binance.US, designed to comply with U.S. federal regulations.
