US President Donald Trump has signed an executive order pardoning the founder of the Binance cryptocurrency exchange Changpeng Zhao. He will serve a four-month prison sentence in 2024, reports NBC.
“President Trump exercised his constitutional authority by pardoning Mr. Zhao, who was prosecuted by the Biden administration as part of their war on cryptocurrency. In its bid to punish the cryptocurrency industry, the Biden administration prosecuted Mr. Zhao despite the absence of any allegations of fraud or identified victims,” said White House press secretary Carolyn Levitt.
The pardon decision has sparked debate over a possible conflict of interest. Binance has close ties to World Liberty Financial, which manages the Trump family’s crypto projects and has brought them more than $4 billion in profits. The White House stressed that the decision regarding Zhao was made after “careful consideration”.
“I am deeply grateful for today’s pardon and for President Trump’s support for America’s commitment to fairness, innovation, and justice”, Zhao said.
As a reminder, in 2023, Zhao entered into a deal with the US Department of Justice, admitting that Binance violated anti-money laundering laws. The company was ordered to pay more than $4 billion in fines, and Zhao himself personally paid $50 million and served a prison sentence. After his pardon, he could return to the leadership of Binance, the world’s largest crypto exchange, with a daily trading volume exceeding $65 billion.
