Trump Pardons Binance Founder Zhao After Crypto Conviction/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ President Donald Trump has pardoned Binance founder Changpeng Zhao, who was convicted for failing to prevent illegal money flows through the cryptocurrency exchange. Zhao has deep business ties to Trump-linked crypto ventures, including World Liberty Financial and its stablecoin, USD1. The White House defended the pardon, calling Zhao’s prosecution politically motivated.
Trump Pardons Changpeng Zhao: Crypto Politics Quick Looks
- Trump issues full pardon for Binance founder Changpeng Zhao
- Zhao served prison time for anti-money-laundering failures
- Binance was used by criminals for drug, child abuse, and terrorism transactions
- Zhao is linked to Trump family’s crypto firm, World Liberty Financial
- Trump earned over $57 million from the venture last year
- UAE investment fund plans $2B USD1-backed stake in Binance
- White House calls prosecution an attack on crypto, defends pardon
Deep Look: Trump Pardons Binance Founder Zhao Amid Expanding Crypto Ties
WASHINGTON — President Donald Trump has granted a full pardon to Changpeng Zhao, the founder of Binance, the world’s largest cryptocurrency exchange, who had been convicted for failing to prevent illegal activity on the platform.
Zhao, once the face of global crypto adoption, had pleaded guilty in November to a single felony count for failing to maintain an adequate anti-money-laundering (AML) program. The charges stemmed from Binance’s failure to block the platform from being used to funnel illicit funds related to child sexual abuse, narcotics trafficking, and terrorism.
“I failed here,” Zhao admitted to the court during sentencing. “I deeply regret my failure, and I am sorry.” The admission came before he began serving his prison sentence earlier this year.
The pardon, issued quietly but confirmed on Thursday, follows reports that Zhao personally appealed to Trump for clemency. His request came amid growing connections between Zhao and the Trump family’s cryptocurrency endeavors.
Zhao is closely tied to World Liberty Financial, a blockchain venture launched in September 2024 by Trump and his sons, Donald Jr. and Eric. The firm markets a stablecoin called USD1, which is pegged to the U.S. dollar at a 1:1 ratio. In Trump’s most recent financial disclosure, he reported earning over $57 million in the last fiscal year from World Liberty Financial-related ventures.
The firm is also expanding its footprint internationally. A sovereign investment fund based in the United Arab Emirates is reportedly planning to invest $2 billion worth of USD1 to acquire a stake in Binance. This transaction has not yet been finalized but has raised further questions about the entanglement of Trump’s personal business interests and public policy.
Zhao had previously stated publicly that he had asked Trump for a pardon, which could retroactively nullify his criminal conviction and restore his full legal rights.
The Biden administration has not commented on the pardon directly, but White House Press Secretary Karoline Leavitt released a statement framing the original prosecution as ideologically driven.
“The Biden administration went after Zhao out of a desire to punish the cryptocurrency industry,” Leavitt said. She emphasized that “there were no allegations of fraud or identifiable victims” despite the seriousness of the charges.
Critics of the pardon argue that Zhao’s case highlights broader concerns around cryptocurrency governance, transparency, and enforcement. Binance has been under scrutiny for years, and Zhao’s conviction marked a significant moment in the U.S. government’s efforts to hold crypto firms accountable for enabling criminal financial flows.
Supporters of Zhao, however, argue that his actions were regulatory oversights rather than malicious intent. They point to the lack of individual victim complaints and the absence of fraud charges as evidence that the prosecution was more symbolic than substantive.
Still, the decision to pardon Zhao — especially given his business entanglements with Trump’s crypto firm — is drawing fire from ethics watchdogs, who say it sets a troubling precedent.
“This pardon raises serious questions about the intersection of Trump’s private financial interests and his official decisions,” said one government ethics analyst. “Zhao’s business ties to Trump’s own crypto company make this not only controversial but ethically suspect.”
Trump has repeatedly framed cryptocurrency as a key part of American innovation and has vowed to reduce regulation on digital assets. His administration has drawn support from pro-crypto political donors and investors, many of whom oppose what they see as overreach by federal agencies like the SEC and FinCEN.
With the 2026 midterm elections on the horizon and the digital economy becoming an increasingly politicized issue, the Zhao pardon may signal a broader Republican shift toward deregulation of the crypto sector — especially among Trump-aligned factions.
The timing of the pardon, and the growing value of Trump’s own crypto assets, will likely continue to draw public and legal scrutiny in the weeks ahead.
You must Register or Login to post a comment.