The Trump administration is said to be “considering a pardon” for Changpeng “CZ” Zhao, the co-founder of Binance, who pleaded guilty to money laundering in 2024 and served four months in prison.
Charles Gasparino, a columnist for the New York Post and Fox correspondent, reported that sources close to Zhao indicated that Trump’s team believes the case against him was “rather flimsy, and not warranting a felony charge or incarceration.”
“Trump… is considering a pardon (keep this in mind), which could pave the way for CZ’s return to the cryptocurrency exchange, given that he is still the largest shareholder of Binance,” he mentioned, referencing individuals close to Zhao.
During the Trump Administration, the White House adopted a more favorable stance towards cryptocurrency, with regulators easing longstanding enforcement actions, pushing for regulations, and also pardoning three BitMEX founders, including Arthur Hayes, as well as Silk Road founder Ross Ulbricht.
Changpeng Zhao seemingly unaware of any deal
Zhao responded to Gasparino’s comments on Friday, but did not confirm any knowledge of a potential pardon. Back in May, he stated on the Farokh Radio podcast that he had formally applied for a pardon after reports surfaced suggesting he was seeking one.
“Thank you, Charles. Great news if true. Minor correction, there were no fraud charges. I believe they (the DOJ under the last administration) searched thoroughly for it, but found none. I pleaded guilty to a single violation of the Banking Secrecy Act (BSA),” Zhao said.
“I believe I am the only individual in US history to be sentenced to jail for a single BSA violation, with no additional charges and no prior history. Thank you for the attention,” he added in a separate post.
Both Binance and Zhao, as well as the White House, did not immediately respond to requests for comments.
Zhao pleaded guilty to a money laundering charge in November 2023 as part of a settlement reached between Binance and US authorities, resulting in a $4.3 billion fine for the exchange, and a $50 million fine for Zhao.
He was also compelled to step down as CEO, served four months in prison, and was barred from working at Binance as part of his plea agreement.
Trump’s crypto ties could hamper pardon
Gasparino noted that a final decision is anticipated soon. However, a potential obstacle to the pardon is apprehensions from “Some in the White House” regarding the “optics of a pardon” considering the president’s business affiliations with cryptocurrency, indicating that the situation remains dynamic.
President Donald Trump and his family’s connections to the cryptocurrency sector, through ventures like his memecoin and decentralized finance protocol, World Liberty Financial, have previously sparked concerns over conflicts of interest.
“Remember that these issues often take longer to resolve than anticipated, and this president is also contending with more pressing matters, such as the safe return of Israeli hostages, resolving the wider Gaza conflict, as well as the situation in Ukraine, alongside tariffs and a trade agreement with China,” Gasparino added.
Related: Polymarket odds on CZ presidential pardon surge after X profile change
CZ enforcement action is an aftershock from FTX collapse
Concurrently, Gasparino, referencing Eleanor Terrett, who co-hosts the Crypto In America podcast and previously reported for FOX Business, mentioned that leading figures in the cryptocurrency space, some of whom have ties to the White House, believe that CZ’s charges stemmed from lawmakers’ overreactions following the collapse of Sam Bankman-Fried’s FTX.
Once leading the $32 billion FTX exchange, SBF is currently serving a 25-year prison sentence for several felony charges linked to FTX and Alameda Research’s downfall in November 2022.
“CZ wasn’t charged with fraud like SBF, and many industry participants view his prison sentence as a result of regulators, still reeling after FTX, making an example of anyone involved in crypto within or near the US,” Terrett reportedly stated.
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