Binance Founder Pursues Trump Pardon Amid Crypto Compliance Violations

Changpeng Zhao, founder of the cryptocurrency exchange Binance, is seeking a presidential pardon from Donald Trump for money-laundering violations. Zhao, who served a two-year prison sentence, is now pursuing clemency through a high-profile and multifaceted influence campaign. This effort has drawn attention due to its public visibility and the use of sophisticated lobbying strategies [1].

Zhao’s campaign involves both public and behind-the-scenes efforts. Publicly, he has praised Trump’s approach to cryptocurrency regulation, especially in interviews with media outlets. Privately, his team has engaged lobbyists with connections to the Trump administration, aligning their efforts with the interests of the president and his business circle [2]. The influence campaign reflects the same strategies that have historically secured favorable treatment for wealthy individuals and entities.

A significant aspect of Zhao’s pardon strategy involves Binance’s business relationship with the Trump family’s crypto venture, World Liberty Financial. According to reports, Binance struck a deal that benefited World Liberty Financial, potentially influencing how the Trump administration views Zhao’s clemency request [3]. Zhao has denied any connection between these business dealings and his current pardon campaign, though critics argue that a reciprocal relationship may exist [1].

Pardon applications from both Zhao and Binance have been submitted to the White House and are currently under review. The potential implications of a pardon extend beyond Zhao personally. If granted, it could set a precedent for other crypto industry leaders facing similar legal challenges. It may also signal a shift in the Trump administration’s approach to cryptocurrency regulation and influence future policy in the sector [1].

Binance and Zhao pleaded guilty in 2023 to allowing a flawed compliance system that enabled illicit financial activity on their platform. The Trump administration’s decision to consider clemency would represent a marked shift from the enforcement-focused approach seen in previous administrations [3]. Within Trump’s inner circle, the political risks of such a decision are being carefully evaluated. Democratic critics have raised concerns that the pardon could be perceived as a reward for Binance’s business support of World Liberty Financial, sparking questions about conflicts of interest [1].

Zhao has not publicly responded to these allegations, stating that his campaign focuses solely on his legal record and the broader interests of the crypto industry [2]. The broader significance of this case lies in its potential to shape the regulatory and political landscape of cryptocurrency in the U.S. If successful, it could encourage other crypto firms and executives to seek leniency and alter the relationship between the industry and Washington [1].

Source:

[1] Binance Founder Zhao Seeks Pardon From Trump For Money-Laundering Violations (https://www.benzinga.com/crypto/cryptocurrency/25/08/47021736/binance-founder-zhao-seeks-pardon-from-trump-for-money-laundering-violations)

[2] Crypto’s Richest Man Campaigns for a Pardon (https://politicalwire.com/2025/08/09/cryptos-richest-man-campaigns-for-a-pardon/)

[3] Cryptocurrency News (https://www.nytimes.com/spotlight/cryptocurrency)