Talks Intensify in Washington Over Potential Pardon for Binance Founder CZ
The possibility of a presidential pardon for Changpeng “CZ” Zhao, former CEO of Binance, has triggered internal debate within the Trump administration over the optics and implications of such a move.
Zhao, 48, served a four-month prison sentence in 2024 after pleading guilty to violating the Bank Secrecy Act and failing to implement adequate anti-money laundering controls while leading Binance. Reports suggest Zhao formally petitioned President Trump for clemency earlier this year.
Sources say conversations over his pardon have recently intensified behind closed doors in the White House. Some insiders argue the case against Zhao was weak or overly punitive. If granted, the pardon could clear the way for Zhao to re-engage with Binance, where he remains the largest shareholder.
Zhao responded modestly when rumors surfaced: “Great news if true,” he posted, along with repeated praying-hands emojis. He also corrected public misreporting, clarifying that no fraud charges were brought against him. In media appearances earlier, he emphasized that he was convicted for a single count under the Bank Secrecy Act and had no prior criminal record.
Binance as a company faced heavy penalties too: it paid $4.3 billion as part of a settlement, while Zhao was fined $50 million and agreed to relinquish his CEO role.
Politics, Optics & Conflicts of Interest
Critics warn that approving a pardon for Zhao could be viewed as favoritism, particularly given the Trump family’s own involvement in cryptocurrency ventures. Some within the administration reportedly worry about the political fallout, citing potential conflict-of-interest concerns.
Democratic senators have already pressed the administration for clarity, questioning whether the pardon would improperly benefit a figure so closely entwined with the president’s financial ecosystem.
Industry Views: Justice or Overreach?
Supporters in crypto circles argue Zhao’s sentence was excessive, especially contrasted with critics like Sam Bankman-Fried (SBF), who faced charges of fraud and misusing customer funds.
Many contend regulators, still smarting from the FTX collapse, cast a wide net in the 2023 crackdown, ensnaring figures like Zhao even if wrongdoing was limited.
Pursuit of a pardon may also carry tangible business implications: restoring Zhao’s clean record could open doors with regulated investment firms and ease barriers for Binance’s U.S. operations.
For now, the fate of the pardon remains uncertain. What’s clear is that its outcome will carry weight not only for Zhao’s future but also for the intersection of crypto, regulation, and presidential power.
