In 2023, Binance pleaded guilty to failing to establish an effective anti-money laundering mechanism and agreed to pay a $4.3 billion fine. Zhao himself paid a $50 million fine and served nearly four months in prison last year. U.S. President Donald Trump has pardoned Binance founder Changpeng Zhao, who previously admitted allowing money laundering while leading the cryptocurrency exchange, the White House said on Thursday.
White House press secretary Caroline Leavitt said in a statement: "President Trump has exercised his constitutional authority to pardon Mr. Zhao, who was indicted in the Biden administration's war on cryptocurrency."
"In an effort to punish the cryptocurrency industry, the Biden administration prosecuted Mr. Zhao despite not alleging fraud or identifying victims," Levitt said.
Asked late Thursday why he pardoned Zhao, Trump said, "I don't know, he was recommended by a lot of people."
"A lot of people said he was innocent of any crime," Trump said. "So I pardoned him at the request of many good people."
After receiving the pardon, Changpeng Zhao posted on social platform "
Two months before Changpeng Zhao was pardoned, reports emerged that the Trump family's own crypto ventures had been helped by "a partnership with an unknown trading platform quietly managed by Binance."
U.S. Democratic Senator Elizabeth Warren slammed Trump's pardon of Zhao Changpeng, calling it an example of "corruption."
Warren, ranking member of the Senate Banking, Housing and Urban Affairs Committee, said: "First, Changpeng Zhao pleaded guilty to criminal charges of money laundering. Then he promoted one of Donald Trump's crypto ventures and lobbied for a pardon. Today, Donald Trump pardoned him. If Congress does not stop this corruption in pending market structure legislation, it will descend into lawlessness."
Binance said in a statement, "Today's news of Changpeng Zhao's pardon is incredible. We are grateful to President Trump for his leadership and his commitment to making the United States the cryptocurrency capital of the world. CZ's vision has not only made Binance the largest crypto exchange in the world, but also shaped the broader crypto movement."
Binance is the world’s largest cryptocurrency exchange by trading volume. In 2023, Binance pleaded guilty to failing to establish an effective anti-money laundering mechanism and agreed to pay a $4.3 billion fine. Zhao Changpeng himself paid a fine of US$50 million and served nearly four months in prison last year.