The Trump administration is reportedly “leaning toward pardoning” Binance co-founder Changpeng “CZ” Chao, who served four months in prison after pleading guilty to money laundering charges in 2024.
According to New York Post columnist and Fox correspondent Charles Gasparino, a source close to Zhao said Trump insiders believe the case against CZ is “pretty weak and certainly not worthy of a felony or prison term.”
“Trump is leaning towards a pardon (considering the sources). Since he remains Binance’s largest shareholder, this could be a stepping stone for CZ to return to the cryptocurrency exchange,” he said, citing a source close to Zhao.
Under the Trump administration, the White House has taken a friendlier approach to cryptocurrencies, with regulators rejecting lengthy enforcement actions, advancing legislation aimed at regulating the industry, and pardoning three BitMEX founders, including Arthur Hayes, and Silk Road founder Ross Ulbricht.
It appears that Zhao Changpeng was unaware of the agreement.
Mr. Zhao responded to Mr. Gasparino on Friday, but did not confirm whether he knew anything about a possible pardon. In May, a former Binance executive admitted on Farokh Radio’s podcast that he had formally applied for a pardon after seeing media reports that he had already asked for one.
“Thank you, Charles. That’s great news if true. It’s a small correction, but there was no fraud charge. I think they[the Department of Justice under the previous administration]searched hard, but they couldn’t find anything. I admitted to even one violation of the Bank Secrecy Act (BSA),” Zhao said.
In another post, he added, “I believe he is the only person in American history to be sentenced to prison for one BSA violation with no other crimes or prior history. Thank you for reporting on this.”
Binance, Chao and the White House did not respond to requests for comment.
As part of Binance’s agreement with US authorities, Zhao pleaded guilty to money laundering charges in November 2023, with the exchange paying a $4.3 billion fine and Zhao being fined $50 million.
He was also forced to resign as CEO, sentenced to four months in prison, and was prohibited from working at Binance as part of his plea agreement.
President Trump’s cryptocurrency ties may hinder pardon
Gasparino said a final decision is expected soon. Still, a potential hurdle for any future pardons are concerns from “some in the White House” about “what are the prospects for pardons given the president’s business interests in cryptocurrencies,” and the situation is clearly in flux.
President Donald Trump and his family have previously raised concerns about conflicts of interest through ventures such as memecoins and decentralized finance protocol World Liberty Financial.
“Keep in mind that these things often drag on longer than expected, and this president is working on more pressing issues like returning the Israeli hostages, ending the broader Gaza conflict, and ending the Ukraine conflict on top of tariffs and a trade deal with China,” Gasparino added.
Related: Polymarket odds on CZ presidential pardon skyrocket after X profile change
CZ enforcement measures are an aftershock of the collapse of FTX
At the same time, Gasparino quoted one of the hosts, Eleanor Tellet, saying, american virtual currency On his podcast, the former Fox Business correspondent said that top crypto industry executives with ties to the White House believe CZ’s accusations are the result of an overreaction by lawmakers after Sam Bankman Fried’s FTX collapse.
SBF, who once led the $32 billion FTX exchange, is serving a 25-year sentence for seven felonies related to the November 2022 collapse of FTX and Alameda Research.
“CZ has not been charged with fraud like SBF, and many industry insiders see his prison sentence as the result of regulators who are still sticking eggs in their faces post-FTX to make an example of those who ran the cryptocurrency industry in or around the United States,” Terret said.
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