President Donald Trump is said to be thinking about giving a pardon to Changpeng Zhao, who started and used to lead Binance, according to financial reporter Charles Gasparino.
People who know about the situation say that talks in the White House have become more serious recently, as Trump’s team thinks about the political and legal effects of this action.
Trump’s supporters are trying to get a pardon for CZ, saying that the case against Binance is unfair and based on politics
Changpeng Zhao, commonly called “CZ,” spent four months in prison earlier this year after admitting he broke U. S laws in 2023. Laws that help stop money from being illegally obtained and used.
The case, which was part of the Biden administration’s efforts to regulate the crypto industry, made Zhao leave his position as CEO of Binance and pay a $50 million fine.
Binance was fined $4. 3 billion as part of an agreement, making it one of the biggest fines for a company in the U. S History means the story of what has happened in the past. It tells us about important events, people, and changes in the world.
A report by Gasparino says that some friends of Trump think the case against Zhao is “weak” and doesn’t deserve serious charges or jail time.
They say that the actions taken by the previous government were based on politics and unfairly targeted cryptocurrency companies.
A pardon would show that Trump wants to change how Washington works with the digital asset industry and look at what some people think is too strict enforcement by the regulators during Biden’s time.
Trump is said to be leaning toward giving the pardon, but people in the White House have different opinions on how it will look.
Some helpers are worried about possible negative reactions. They mentioned that the president is getting more involved with businesses in the crypto industry, and people might think a pardon looks like favoritism.
Some people believe that Zhao working with the police and not having a criminal background make a strong case for him to receive mercy.
Zhao’s case became one of the most famous legal actions in the history of cryptocurrency. In November 2023, he confessed in a Seattle federal court that he did not put in place a good anti-money laundering program at Binance, breaking the Bank Secrecy Act.
The deal let him keep most of his ownership in Binance but required him to leave his executive position.
A pardon could help CZ return to the world of cryptocurrency, but does he even want it
In April 2024, in the U. S District Judge Richard Jones gave Zhao a four-month prison sentence, which is much shorter than the 36 months that the Department of Justice was asking for.
Prosecutors said Binance helped with transactions connected to banned countries and illegal activities, but the judge noted Zhao’s cooperation, feelings of regret, and good history as reasons to be lenient.
Zhao was let go from prison on September 27, 2024, two days early, after being there for 116 days. After he was released, he said in interviews that he didn’t want to be the CEO of Binance again, describing his seven years at the company as “a closed chapter. ”
In a November interview, he said he was concentrating on new projects in artificial intelligence, biotechnology, and education. One of these projects is Giggle Academy, a nonprofit effort to offer free basic education around the world using fun learning systems based on blockchain technology.
Even though Zhao is no longer in charge, he still owns the most of Binance, with a 90% share in the company.
His total wealth jumped to around $75 billion after BNB reached a new highest value in July, which happened at the same time as Bitcoin’s price also reached new records.
Binance is still running with Richard Teng as the CEO, who took over after Zhao stepped down. The exchange is still dealing with several legal problems, including a lawsuit with the bankrupt crypto company FTX.
In November 2024, FTX took legal action against Binance and Zhao to try to get back about $1. 8 billion that they say was unfairly moved before FTX went bankrupt.
The lawsuit says that Binance used improperly taken customer money to pay for its 2021 share buyback deal with FTX. Binance has rejected the accusations, saying they are without any real proof.
If approved, a Trump pardon would erase Zhao’s criminal record and might allow him to come back to the global crypto world.
Some people who know him say he has moved on from his time with Binance, but others think that a pardon could help him participate more easily in regulated markets and business activities.
While talks are ongoing in the White House, it’s unclear when a final decision will be made.
Gasparino pointed out that presidential pardons usually take more time than anticipated, especially when there are other important issues related to foreign policy and the economy.
