Changpeng Zhao Pardon Reportedly In The Works

Key Takeaways

• The Trump administration is reportedly considering a pardon for Binance founder Changpeng Zhao.

• Zhao served four months in prison for a single BSA violation and paid $50 million in fines.

• Trump insiders reportedly view the case as weak and politically motivated, especially in light of FTX’s collapse.

• A final decision has not been made, and optics surrounding Trump’s crypto ties may influence the outcome.

• The Changpeng Zhao pardon would mark another pro-crypto move by Trump, but not without public scrutiny.

CZ Responds: “Great News If True”

While media reports have begun circulating, Zhao himself has not confirmed any deal.

Zhao previously said on the Farokh Radio podcast that he had applied for a pardon, but was surprised to see reports claiming he had already done so.

Source: X (@cz_binance)

Neither Zhao, Binance, nor the White House have publicly confirmed the reports at the time of writing.

Changpeng Zhao’s Legal Troubles & Sentence

In late 2023, Changpeng Zhao pleaded guilty to violating the Bank Secrecy Act (BSA) as part of a broader settlement between Binance and U.S. authorities.

The exchange agreed to pay $4.3 billion in penalties, while Zhao personally paid $50 million and was sentenced to four months in prison.

Despite the relatively short sentence, Zhao was forced to step down as CEO of Binance and is currently prohibited from participating in the exchange’s operations.

Following his release, CZ stated:

“I believe I am the only person ever sentenced to jail in U.S. history for a single violation of the BSA, with no other charges or prior history”.

Trump Administration Reportedly “Leaning Toward” A Pardon

According to Charles Gasparino, a Fox correspondent and New York Post columnist, insiders close to President Donald Trump claim he is “leaning toward a pardon” for Zhao.

Source: X (@CGasparino)

Sources suggest that Trump views the DOJ’s case against CZ as weak and undeserving of felony status or prison time.

Gasparino added that the potential pardon could set the stage for Zhao’s return to Binance, where he remains the largest shareholder, despite being banned from holding an executive role.

A Crypto-Friendly Administration?

Under Trump’s leadership, the administration has taken a more favorable approach to cryptocurrency, reversing some regulatory actions and granting clemency to key crypto figures.

Notably, Trump previously pardoned the BitMEX founders and Silk Road’s Ross Ulbricht, both of whom were major figures in early crypto history.

A pardon for Changpeng Zhao would reinforce the perception of a pro-crypto stance from the Trump administration — but not without controversy.

Potential Roadblocks: Trump’s Crypto Ties

While Trump may support a pardon, some insiders caution that optics could delay or derail the decision. Trump and his family have personal business ties to crypto, including a memecoin and decentralized finance ventures such as World Liberty Financial.

Critics argue that pardoning a crypto billionaire, particularly one who still holds significant influence in the industry, may raise conflict-of-interest concerns as Trump pursues re-election.

FTX Collapse Casts Long Shadow

Many in the crypto community view the charges against CZ as an overcorrection following the dramatic collapse of FTX, led by Sam Bankman-Fried (SBF). SBF received a 25-year sentence for fraud and conspiracy after his $32 billion empire imploded in 2022.

Eleanor Terrett, co-host of the ‘Crypto in America’ podcast, said:

“CZ wasn’t accused of fraud like SBF. Many believe regulators simply wanted to make an example out of anyone operating in the U.S. crypto space.”

Industry leaders suggest the prosecution of Zhao may have been politically motivated, a way for lawmakers to demonstrate they were tough on crypto after previously overlooking red flags.

FAQ

Is Changpeng Zhao being pardoned?

No official pardon has been granted yet. However, reports suggest the Trump administration is considering a pardon for Zhao, pending internal discussions.

What did CZ plead guilty to?

CZ pleaded guilty to one violation of the Bank Secrecy Act (BSA). He was not charged with fraud or conspiracy.

Can Zhao return to Binance?

Currently, CZ is prohibited from holding an executive position at Binance due to the terms of his plea deal. A pardon could potentially open the door for a return, but legal hurdles remain.

Why is this controversial?

Trump’s personal involvement in crypto ventures raises ethical concerns over pardoning a high-profile industry figure, especially during an election cycle.