Binance's Ex-CEO Zhao Denies Trump Pardon Allegations Amid Legal Scrutiny

Changpeng "CZ" Zhao, the former CEO of Binance, has strongly denied allegations that he sought a presidential pardon from former US President Donald Trump. The claims, which surfaced in a report, suggested that Zhao was exploring legal avenues to regain influence in the cryptocurrency industry. Zhao took to social media to refute these allegations, stating that he never discussed a business arrangement between the Trump family and Binance.US. He further denied pursuing a pardon from Trump, characterizing the report as a politically motivated attack against the president and the cryptocurrency sector.

Zhao's legal troubles stem from a landmark case in which Binance reached a $4.3 billion settlement with US authorities in November 2023. As part of the agreement, Zhao pleaded guilty to violating the Bank Secrecy Act (BSA) for failing to implement an effective anti-money laundering program at Binance. He subsequently stepped down as CEO and was sentenced to four months in prison. The plea deal also reportedly included a stipulation barring him from any operational or managerial role at Binance indefinitely.

Despite serving his sentence, the implications of Zhao’s conviction continue to be a focal point of scrutiny, particularly as the regulatory landscape for crypto shifts under the new administration. While a presidential pardon from Trump would not erase Zhao’s conviction, it could potentially lift some of the legal restrictions imposed on him. According to the US Department of Justice, a pardon "removes legal disabilities imposed because of the conviction," meaning it could open the door for Zhao to resume certain professional activities within the cryptocurrency space.

However, legal experts argue that a pardon’s impact would likely be limited. The $4.3 billion settlement agreement with US authorities—including the permanent injunction against Zhao’s involvement in Binance—may still hold, regardless of whether Trump grants him clemency. Additionally, such a move would likely face intense scrutiny from lawmakers and regulators who have sought to hold Binance accountable for its alleged past regulatory lapses.

The report also speculated that Trump’s administration has been taking a markedly different approach to cryptocurrency regulation. Since Trump took office, the Securities and Exchange Commission (SEC) has reportedly paused multiple enforcement actions against major crypto firms, including some entities linked to those who supported his campaign or inauguration fund. One of the most notable examples is the SEC’s decision to file for a 60-day pause in its legal battle with Binance, a move that followed the departure of former SEC Chair Gary Gensler. The shift in approach has sparked speculation that Trump’s administration may be looking to ease regulatory pressures on the crypto industry.

Additionally, reports suggest that the SEC may soon conclude its civil case against Ripple Labs, a long-running lawsuit that has been a defining legal battle for the crypto industry. If the SEC opts to drop its case against Ripple, it could set a precedent for further regulatory softening under Trump. While Zhao remains one of the most influential figures in the crypto world, his ability to directly participate in Binance’s operations or any major crypto firm remains uncertain. Even if Trump were to grant him a pardon, Zhao would still face scrutiny from regulators and financial institutions wary of Binance’s history of compliance issues.

For Binance itself, the legal battles with US regulators remain a significant overhang. While the company has taken steps to improve its regulatory standing—including leadership changes and compliance overhauls—its future in the US market remains uncertain. Meanwhile, Zhao has hinted at a desire to remain involved in the industry in some capacity, even if not directly linked to Binance. His recent social media activity suggests that he remains deeply engaged with the broader crypto ecosystem and may seek alternative ways to contribute.