Changpeng Zhao, the founder and former CEO of the world’s largest crypto exchange Binance, is actively pursuing a presidential pardon from Donald Trump after his release from prison late last year.
Binance Founder Applies For Presidential Pardon
In a recent appearance on the Farokh Radio podcast, Zhao, commonly known as “CZ,” revealed that he formally applied for the pardon two weeks ago, prompted by recent media coverage discussing the possibility of a deal involving Trump.
Zhao’s legal troubles in the US stem from his guilty plea in 2023 for failing to implement adequate anti-money laundering (AML) practices at Binance, which resulted in the exchange being fined over $4 billion. Zhao served four months in prison from April to September 2023.
His conviction marked a significant moment in the regulatory scrutiny facing cryptocurrency exchanges, particularly as the US government intensified its efforts to enforce financial compliance with the US Securities and Exchage Commission (SEC) at the helm of this movement.
During the podcast, Zhao explained that he decided to submit his pardon application after articles in Bloomberg and the Wall Street Journal speculated about his potential collaboration with Trump.
“If they are writing this article, we might as well officially apply,” he said, indicating his intent to clear his name. Although he denied any discussions regarding a business deal with Trump, he acknowledged that “no felon would mind a pardon,” especially given the unique circumstances surrounding his conviction.
Zhao Optimistic About Trump’s Return To The White House
Zhao’s pardon application coincides with a recent announcement by Eric Trump, who revealed that his family’s crypto firm, World Liberty Financial (WLF), entered into a joint venture with Binance and UAE-based venture firm MGX.
This partnership involves MGX utilizing stablecoins from WLF to invest $2 billion in Binance, with potential yields of up to $80 million for WLF within a year.
If Trump decides to grant Zhao a pardon, it would not be unprecedented. The President has exercised his clemency powers frequently, having pardoned numerous individuals within his first 100 days in office, including several related to cryptocurrency offenses.
Notably, he pardoned Ross Ulbricht, the founder of the Silk Road web marketplace, as well as executives from the crypto exchange BitMEX who were implicated in similar legal violations.
Reflecting on the potential for a second Trump presidency, Zhao expressed optimism, suggesting that Trump would be beneficial for the cryptocurrency industry, particularly for individuals facing legal challenges.
“This will be a good guy for our industry and also for any sort of people who have a criminal charge,” he stated, pointing to what he perceives as a more favorable environment for crypto-related businesses under Trump’s leadership.
Featured image from DALL-E, chart from TradingView.com
