US President Donald Trump has pardoned Changpeng “CZ” Zhao, the co-founder of cryptocurrency exchange Binance, according to a statement from the White House. The pardon comes after Zhao pleaded guilty to violating US anti-money-laundering laws in 2023 and served a four-month prison sentence in 2024. The White House accused the previous administration, under President Joe Biden, of launching an unnecessary “war” against the cryptocurrency industry.
Binance, created in 2017, quickly became the world’s largest cryptocurrency exchange by volume, making Zhao a billionaire. The company has been pursuing a pardon for Zhao for almost a year, according to the Wall Street Journal. Despite stepping down as chief executive in 2023, Zhao remains the majority shareholder of Binance.
The White House statement criticized the Biden administration’s decision to prosecute Zhao, stating that it had “severely damaged the United States’ reputation as a global leader in technology and innovation.” The statement also claimed that the “war on crypto” was now over. Democrats have been quick to criticize Trump’s decision to pardon Zhao, with Massachusetts Senator Elizabeth Warren calling it an example of corruption.
Trump has been a defender and promoter of the cryptocurrency sector since his presidential campaign, reversing his past criticism. He has eased the regulatory framework imposed on the cryptocurrency industry, which has contributed significantly to his reelection campaign. The Trump family’s various crypto businesses have reportedly netted them a pre-tax profit of around $1 billion over the past 12 months.
The pardon of Zhao is the latest in a series of controversial moves by Trump, including a blanket pardon for people convicted of violence in the attack on the US Capitol on January 6, 2021. Trump has also commuted the sentence of disgraced former Republican lawmaker George Santos, who was convicted of committing wire fraud and identity theft.
The pardon of Zhao could pave the way for Binance to return to the United States, after it agreed to suspend its American operations in a deal to resolve the Department of Justice’s criminal investigation. The move is likely to have significant implications for the cryptocurrency industry, which has been facing increased regulatory scrutiny in recent years.