Trump Pardons Binance Founder Changpeng Zhao Amid Crypto Controversy
In a move that's been met with widespread controversy, U.S. President Donald Trump has issued a pardon to Changpeng Zhao, the co-founder of the world's largest cryptocurrency exchange, Binance, who had previously pleaded guilty to charges related to inadequate anti-money laundering controls123456.
A Case of Crypto Controversy
Zhao, also known as 'CZ', admitted guilt for the charges in 2023 and was sentenced to four months in prison in 2024467. The charges stemmed from money-laundering violations, including transactions linked to terrorist group Hamas, which allowed criminals to move money on Binance89. Despite these acknowledgments, Zhao has been characterized as a victim of political persecution and his pardon has been described as a sign that the war on crypto is over
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Legal Maneuvers and Presidential Pardons
In an attempt to avoid trial, Binance reached an agreement with the U.S. government, which resulted in Zhao's resignation from his role as CEO11. However, the plea deal was not enough to avoid a prison sentence. Following his sentence, Binance spent the last year seeking a pardon for its founder, an effort that ultimately proved successful10.
President Trump announced Zhao's pardon on Wednesday, exercising his constitutional authority21234. According to White House spokeswoman Karoline Leavitt, Zhao was prosecuted by the Biden administration in their war on cryptocurrency
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Ties to the Trump Family and the Crypto Industry
The pardon coincides with another significant crypto-related lawsuit involving the designers of a cryptocurrency launched by U.S. first lady Melania Trump13. This incident, coupled with the fact that Zhao has been working to support a crypto company tied to the Trump family, raises questions about the motivations behind the pardon914.
In a related case, a cryptocurrency wallet and a crypto vault were identified as a link between Hayden Davis and entrepreneur Mauricio Novelli. This wallet received money from Novelli and then transferred it to Davis, as part of transactions scrutinized by the Libra Commission in Congress1.
Current Status and Reactions
Despite the controversy, President Trump has stood by his decision, stating that a lot of people
had told him Zhao was not guilty14. Zhao himself expressed gratitude for the pardon in a social media post3.
As one of the wealthiest men in the crypto world, Zhao's pardon will undoubtedly have significant implications for the industry[13]. However, with ongoing legal battles and controversies surrounding crypto transactions, the future of cryptocurrency regulation remains uncertain.