President Donald Trump has issued a full pardon to Changpeng Zhao, the co-founder of Binance, the world's largest cryptocurrency exchange, following his conviction on money laundering charges.
The White House announced the decision on Thursday, marking another instance of Trump's leniency toward executives in the cryptocurrency and technology sectors.
Zhao, widely known as CZ, pleaded guilty in 2023 to failing to implement an effective anti-money laundering program at Binance.
He received a four-month prison sentence in April 2024, which he completed in September of that year.
As part of the plea agreement, Zhao stepped down as CEO of the exchange he founded in 2017 and paid a personal fine of $200 million.
Binance itself settled with federal authorities for more than $4 billion in penalties, admitting to violations including unlicensed money transmitting, sanctions breaches, and anti-money laundering lapses.
The U.S. government had accused the platform of enabling illicit flows to terrorists, cybercriminals, and other bad actors.
White House press secretary Karoline Leavitt stated that Trump exercised his constitutional authority in granting the pardon to Zhao, whom she described as prosecuted amid the Biden administration's war on cryptocurrency.
Leavitt's remarks suggested the prior sentencing was unduly severe, a perspective echoed by Trump and his advisers after an extensive lobbying effort by Binance spanning nearly a year.
This action aligns with Trump's broader pro-crypto agenda, including his pledge to position the United States as the crypto capital of the planet.
The president's family has financial interests tied to the sector through World Liberty Financial, a crypto firm hosted on Binance.
Zhao's release from legal constraints could facilitate his potential return to leading roles in the industry.
The pardon represents the latest in a series of clemencies extended by Trump to white-collar offenders in tech and finance.
Earlier this year, he forgave the founders of the BitMEX exchange for similar anti-money laundering infractions and the Nikola electric truck company's founder for fraud.
He also commuted the sentence of an executive from the defunct Ozy Media startup.
Observers note this reflects a shift toward a more permissive regulatory environment for digital assets compared to previous administrations.
Trump has advanced initiatives such as establishing a national cryptocurrency reserve and easing rules for retirement funds to invest in them.
He even launched his own digital coin ahead of his January inauguration.
While Binance, registered in the Cayman Islands, has not yet commented publicly, the pardon may clear hurdles for its expanded operations in the U.S. market.
This development underscores the evolving intersection of politics, finance, and innovation in the cryptocurrency space.