President Donald Trump has issued a presidential pardon for Changpeng Zhao, the founder of the world's largest cryptocurrency exchange, Binance. Trump stated that he was influenced by numerous individuals who asserted Zhao's innocence and that his actions were "not even a crime." The pardon comes after Zhao served a four-month prison sentence for failing to maintain an effective anti-money laundering program at Binance.
Key Takeaways
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Donald Trump pardoned Binance founder Changpeng Zhao.
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Trump claimed Zhao's actions were "not even a crime" and that he was "persecuted by the Biden Administration."
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Zhao pleaded guilty to violating the US Bank Secrecy Act and served a four-month sentence.
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Binance stated gratitude for the pardon and a commitment to making America the "Capital of Crypto."
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Concerns have been raised about potential conflicts of interest due to business ties between the Trump family's crypto company and Binance.
A Pardon Based on External Influence
President Trump announced the pardon, stating that he acted upon the recommendation of "a lot of people" who assured him of Zhao's innocence. "I don't know him, I don't believe I've ever met him, but I've been told he had a lot of support, and they said that what he did is not even a crime, it wasn't a crime, he was persecuted by the Biden Administration," Trump told reporters.
Zhao's Legal Situation and Binance's Response
Changpeng Zhao, widely known as CZ, pleaded guilty in late 2023 to one count of failing to maintain an effective anti-money laundering program. This led to his resignation as CEO of Binance and a four-month prison sentence. Binance paid $4.3 billion to settle related allegations. Zhao's legal team emphasized that his conviction involved no fraud, no victims, and no criminal history.
Following the pardon, Zhao expressed his gratitude on social media, stating, "Will do everything we can to help make America the Capital of Crypto and advance Web3 worldwide." The pardon could potentially allow Zhao to return to a role within Binance, from which he was previously prohibited.
Scrutiny and Business Ties
The pardon has drawn attention due to reports of business dealings between the Trump family's crypto venture, World Liberty Financial, and Binance. Critics have questioned whether these ties influenced the decision. A White House statement asserted that President Trump was "exercising his constitutional authority" and that the case was "overly prosecuted by the Biden administration."
Binance, which has been barred from operating in the US following Zhao's guilty plea, has been a significant player in the growth of the Trump family's crypto enterprise. The pardon signifies a potential shift in the Trump administration's stance on the cryptocurrency industry.
Sources
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I’m told ‘what he did is not even a crime’ — TradingView News, TradingView.
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Trump pardons founder of Binance, world’s largest crypto exchange | Technology, The Guardian.
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The Latest: Trump pardons Binance founder Changpeng Zhao, WHEC.com.
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Who is Changpeng Zhao? Binance crypto founder wins Trump pardon - World News, The Financial Express.
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Donald Trump pardons cryptocurrency exchange creator, CTV News.
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