CZ's $2M Scholarship Tied to Trump Pardon Bid as Binance Coin Dips 3%

Changpeng Zhao (CZ), co-founder and former CEO of Binance, has reportedly taken steps to align with U.S. President Donald Trump’s policy priorities following his recent release from a four-month jail sentence for anti-money laundering violations. According to a report by NewsBTC, Zhao’s foundation, Giggle Academy, has partnered with American Legion Charities to establish a $2 million scholarship fund for children of fallen or disabled U.S. service members. This initiative coincides with Trump’s renewed emphasis on advancing artificial intelligence (AI) and blockchain technology, aligning with the president’s broader goals to solidify America’s dominance in emerging tech sectors and support military families [1].

The scholarship program, offering grants of up to $20,000 and featuring an annual competition for innovative solutions to societal challenges, has drawn speculation as a strategic move. An anonymous cryptocurrency industry executive told NewsBTC that CZ’s philanthropy “could be an attempt to gain favor with the president,” suggesting that U.S. leadership in crypto and tech requires “strong support from top exchanges and entrepreneurs” to foster a skilled workforce. Trump’s recent approval of an $832 billion defense funding bill, which includes enhanced benefits for service members, further underscores the alignment with the administration’s priorities [1].

Zhao’s pardon application has gained traction amid growing political speculation. On a recent podcast, he confirmed formally requesting a presidential pardon, a move that has elevated him to the top of crypto-betting platform Polymarket’s 2025 pardon leaderboard. Analysts note that while the platform’s polls reflect market sentiment, actual pardons depend on political and legal factors, which remain uncertain. Zhao’s legal troubles, including his departure from Binance and relinquishment of operational roles, have left him in a precarious position, prompting strategic alliances to navigate his U.S. legal landscape [1].

The market reaction to Zhao’s activities has been mixed. Binance Coin (BNB), the exchange’s native token, recently traded at $782, consolidating above key support levels but still 3% below its two-day high of $809. While no direct link has been established between the scholarship program and BNB’s price action, the token’s performance reflects broader market uncertainty amid regulatory scrutiny and shifting political dynamics [1].

Industry observers remain cautious, emphasizing that CZ’s actions could signal a broader trend of cryptocurrency leaders seeking political patronage to mitigate regulatory risks. Trump’s history of controversial pardons, including his public consideration of forgiving Ghislaine Maxwell, complicates predictions about his stance on Zhao’s case. However, Zhao’s focus on AI and blockchain—sectors critical to Trump’s 2024 election promises—positions him as a potential ally in the administration’s push to attract global crypto innovation [1].

Source: [1] [Former Binance CEO’s Alleged Support For Trump Initiatives]

https://www.newsbtc.com/binance/former-binance-ceos-alleged-support-for-trump-initiatives-a-strategy-for-pardon/