Binance Founder Zhao Applies for Trump Pardon After Prison Sentence

Changpeng “CZ” Zhao, the co-founder and former CEO of Binance, has confirmed that he applied for a presidential pardon from former U.S. President Donald Trump after serving a four-month prison sentence last year. Zhao made this revelation during an appearance on the Farokh Radio podcast, stating that the application was submitted two weeks prior to the podcast. The decision to apply for a pardon was prompted by news reports suggesting that Zhao was seeking clemency amid discussions of a potential business deal between the Trump family and Binance.US.

Zhao initially refuted these reports but did not rule out the possibility of seeking a pardon. He explained that seeing the news reports encouraged him to officially apply for clemency. The pardon of three co-founders of the BitMEX crypto exchange, including Arthur Hayes, by President Trump also influenced his decision to seek a pardon. Zhao pleaded guilty to money laundering charges in 2023, agreeing to step down as CEO and receiving a lifetime ban from managing or operating Binance. He was released from prison in September after agreeing to pay a $50 million fine, while Binance agreed to pay a record-setting $4.3 billion in fines.

After stepping down, Zhao was replaced by former Abu Dhabi regulator Richard Teng, who has led Binance to invest heavily in regulatory compliance, which he described as “Binance 2.0.” Despite seeking a presidential pardon, Zhao clarified during the podcast that he has no interest in returning to the CEO position. He remains Binance’s biggest shareholder, owning an estimated 90% stake in the world’s largest digital asset exchange.

The application for a presidential pardon does not effectively wipe Zhao’s money laundering conviction from his record. However, it could potentially allow him to return as CEO of Binance. Zhao’s decision to seek a pardon highlights the complex legal and regulatory landscape that the cryptocurrency industry operates within. The pardon process and its potential outcomes remain uncertain, but Zhao’s actions underscore the significance of regulatory compliance and the potential legal risks associated with the industry.