President Trump has decided today to grant a pardon to CZ, or Changpeng Zhao, founder of Binance. The news has just been reported by the Wall Street Journal.
The President Donald Trump has indeed today signed a presidential pardon for Changpeng Zhao, also known as CZ, the founder of the cryptocurrency exchange platform Binance, previously convicted for violations related to money laundering.
The decision came after months of intense activities by Zhao aimed at supporting the Trump family’s cryptocurrency company and after Trump himself expressed sympathy towards the political persecution arguments directed at Zhao and other entrepreneurs in the crypto sector.
Zhao, who was convicted in 2023 and served a four-month prison sentence, was at the center of a major lawsuit brought by U.S. regulators in an attempt to crack down on Binance’s non-compliant practices, including illicit transactions with sanctioned entities and a deficiency in anti-money laundering controls.
Nevertheless, Trump and some of his advisors have deemed the accusations disproportionate and politically motivated, opposing the severity of the Biden administration towards cryptocurrency.
Trump and the relationship with cryptocurrencies
The pardon signed on Wednesday marks a significant shift in the Trump administration’s policy towards the cryptocurrency sector, now seen as fertile ground for innovation rather than a target for heavy sanctions. The decision is also believed to potentially facilitate Zhao’s return to an active role at Binance, where he remains the largest individual shareholder.
The connection between Zhao and the Trump family is not limited to politics: in recent months, collaboration agreements have emerged between Binance and the Trump family’s cryptocurrency company, World Liberty Financial, fueling further speculation about a common interest in developing the crypto market in the United States.
Supporters of Zhao and several market operators believe that the regulatory landscape has been decidedly too aggressive, and they look to clemency as a possible redemption and a signal of a more favorable approach to the sector by the U.S. government.
The granting of the pardon comes at a time when the cryptocurrency world is particularly attentive to prominent political moves, with the hope that this could usher in a new era of development and stability for exchange platforms and their main players.