Binance Founder CZ Seeks Trump Pardon After Money Laundering Conviction
Binance founder Changpeng Zhao, also known as CZ, has confirmed that he applied for a presidential pardon from former U.S. President Donald Trump. This move comes after Zhao was sentenced to four months in prison for pleading guilty to charges of enabling money laundering at his cryptocurrency exchange, Binance. Zhao, who resigned as the CEO of Binance in 2023, has been seeking a pardon from the Trump administration to clear his name.
Zhao revealed on a Farokh Radio podcast episode aired May 6 that he “wouldn’t mind” a pardon and that his lawyers have already filed the paperwork on his behalf. He mentioned that the application was submitted about two weeks ago, following reports from various media outlets that he was seeking a pardon from Trump amid discussions of a business deal between the Trump family and Binance.US. Zhao denied the reports at the time but decided to officially apply after seeing the media coverage.
Zhao's decision to apply for a pardon was also motivated by Trump's previous actions, including the pardon of three BitMEX founders, such as Arthur Hayes, who were convicted of similar charges. Zhao pleaded guilty to a money laundering charge in November 2023 as part of a deal with U.S. authorities, which saw Binance pay a $4.3 billion fine, with Zhao contributing $50 million. He was also prohibited from working at Binance as part of his plea deal.
According to the U.S. Department of Justice, a pardon would not erase Zhao’s money laundering conviction; however, it could potentially allow him to assume a management or operational role at Binance.US. Zhao has no plans to return as Binance CEO, stating that he feels the team is doing well and doesn't need him back. Since leaving prison, Zhao has commenced advisory roles in various regions, assisting on matters related to crypto regulation and implementing blockchain solutions.
Zhao's application for a pardon is significant given the high-profile nature of his case and the broader implications for the cryptocurrency industry. The pardon, if granted, would not only clear Zhao's legal record but also send a strong message about the Trump administration's stance on cryptocurrency regulation and enforcement. It would also highlight the complex interplay between political influence and legal outcomes in high-stakes cases.
The pardon request also underscores the ongoing debate within the cryptocurrency community about the role of regulation and enforcement. While some argue that stricter regulations are necessary to prevent illegal activities, others contend that overzealous enforcement can stifle innovation and hinder the growth of the industry. Zhao's case serves as a microcosm of these broader debates, with his pardon request potentially influencing future regulatory and enforcement actions.
