Trump pardons convicted Binance founder Changpeng "CZ" Zhao
Add Axios as your preferred source to
see more of our stories on Google.
Former Binance CEO Changpeng "CZ" Zhao arriving at federal court in Seattle in April 2024. Photo: Jason Redmond/AFP via Getty Images
President Trump has pardoned Changpeng Zhao, better known as CZ, the founder of crypto exchange Binance, according to a statement from the White House.
Why it matters: The pardon likely provides a path for Binance to operate in the U.S. after more than a year of lobbying Trump.
What they're saying: "President Trump exercised his constitutional authority by issuing a pardon for Mr. Zhao, who was prosecuted by the Biden Administration in their war on cryptocurrency. In their desire to punish the cryptocurrency industry, the Biden Administration pursued Mr. Zhao despite no allegations of fraud or identifiable victims," White House spokesperson Karoline Leavitt said in a statement.
Catch up quick: CZ was sentenced to four months in prison after pleading guilty to one count of violations of the Bank Secrecy Act.
- Rumors of investigations into the company swirled for years.
- CZ stepped down at the time and new CEO Richard Teng has run Binance since.
"We thank President Trump for his leadership and for his commitment to make the US the crypto capital of the world," a Binance spokesperson said in a statement Thursday.
- "CZ's vision not only made Binance the world's largest crypto exchange but shaped the broader crypto movement. Binance remains focused on building a secure, transparent, and user-first platform that reduces fees and increases access to the financial system for all."
Friction point: The Trump family's potential ties to Binance have been a source of discussion since the summer.
- In May, World Liberty Financial, the Trump family's crypto venture, announced that an Emirati state-backed venture fund would use World Liberty's new stablecoin to complete a $2 billion investment in Binance.
That prompted a sharp statement from Senator Elizabeth Warren (D-Mass.), a frequent critic of Trump and the crypto industry, who signaled Thursday that the pardon could further complicate negotiations around a major crypto bill.
- "First, Changpeng Zhao pleaded guilty to a criminal money laundering charge. Then he boosted one of Donald Trump's crypto ventures and lobbied for a pardon. Today, Donald Trump did his part and pardoned him. If Congress does not stop this kind of corruption in pending market structure legislation, it owns this lawlessness," Warren said.
Zoom out: CZ is arguably the most successful entrepreneur in the history of the still new cryptocurrency industry, launching the world's biggest cryptocurrency exchange, one of its most popular blockchains and making countless investments across the space.
- Readers may remember his name from the bankruptcy of the cryptocurrency exchange FTX. In that story, he offered to save the company and then backed out once he got a look at the books.
- Lately, he's been stewarding investments from his massive fund, Yzi Labs.
Editor's note: This article was updated with a comment from Binance and with additional information throughout.
