The crypto community is abuzz with the news that the Trump administration is reportedly considering a pardon for Changpeng “CZ” Zhao, the co-founder of Binance, who pleaded guilty to money laundering charges in 2024 and spent four months in prison. According to Charles Gasparino, a columnist for the New York Post and a correspondent for Fox, sources close to Zhao indicate that Trump insiders believe the case against CZ was weak and did not merit a felony charge or prison sentence.
Gasparino’s sources suggest that Trump is leaning towards granting a pardon, which could pave the way for CZ’s return to the crypto exchange as its largest shareholder. This move would be consistent with the Trump administration’s friendlier approach to cryptocurrencies, which has included dismissing long-standing enforcement actions, pushing forward legislation to regulate the industry, and pardoning three BitMEX founders, including Arthur Hayes and Silk Road founder Ross Ulbricht.
However, it appears that CZ himself is not aware of any potential pardon deal. In response to Gasparino’s report, Zhao stated that he had not been accused of fraud and had only pleaded guilty to a single violation of the Banking Secrecy Act (BSA). He also expressed gratitude for the reporting, saying, “I believe I am the only person ever in U.S. history to be sentenced to prison for a single BSA violation, with no other charges, no criminal history.”
CZ’s Plea Deal and Prison Sentence
Zhao pleaded guilty to money laundering charges in November 2023 as part of a deal with U.S. authorities that required Binance to pay a $4.3 billion fine. He was also fined $50 million, forced to resign as CEO, and served four months in prison. Additionally, he was barred from working at Binance as part of his plea deal.
Gasparino notes that a final decision on the pardon is expected soon, but there are concerns within the White House about the optics of a pardon given President Trump’s business interests in cryptocurrencies. Trump and his family have ties to the crypto sector through ventures like his memecoin and decentralized finance protocol World Liberty Financial, which could raise conflicts of interest.
Industry Reaction and Context
Some top crypto executives, including those with ties to the White House, believe that CZ’s allegations are an aftershock of the FTX collapse. They argue that regulators overreacted after the collapse of Sam Bankman-Fried’s FTX, which led to CZ’s prison sentence. Eleanor Terrett, a host of the “Crypto In America” podcast and a former FOX Business reporter, reportedly said that many industry players see CZ’s sentence as a result of regulators making an example of anyone in the crypto space operating in or around the US.
SBF, the former leader of FTX, is serving a 25-year prison sentence for seven felonies related to the November 2022 collapse of FTX and Alameda Research. The contrast between SBF’s sentence and CZ’s has led some to question the fairness of the regulatory environment and the potential for overreach.
Polymarket Chances and Pardon Speculation
Polymarket chances of a pardon for CZ have increased after recent developments, with some speculating that the pardon could be a significant boost to the crypto industry. However, the situation remains uncertain, and the White House has not commented on the matter.
For more information on this developing story, visit https://cointelegraph.com/news/trump-white-house-mulls-cz-pardon-binance?utm_source=rss_feed&utm_medium=rss_tag_regulation&utm_campaign=rss_partner_inbound
