**President Donald J. Trump Pardons Binance Founder Changpeng “CZ” Zhao Amid Cryptocurrency Scrutiny**
President Donald J. Trump has issued a pardon for Changpeng “CZ” Zhao, the embattled founder of Binance, following intense scrutiny Zhao faced under the Biden administration. This move reflects Trump’s intent to shift the current American government’s stance on cryptocurrency, contrasting with the Biden administration’s previously stringent approach.
According to a statement by White House Press Secretary Karoline Leavitt to the Wall Street Journal, “President Trump exercised his constitutional authority by issuing a pardon for Mr. Zhao, who was prosecuted by the Biden Administration in their war on cryptocurrency.”
### Zhao’s Conviction and Allegations
Zhao was previously convicted for offenses related to facilitating money laundering on the Binance platform. The allegations included enabling multiple transactions totaling up to $900 million between the United States and Iran. These charges form the backbone of the legal actions taken against him during the Biden administration.
### Zhao’s Involvement with the Trump Family’s World Liberty Financial (WLF)
The Wall Street Journal reports that President Trump’s decision to pardon Zhao came after months of Zhao publicly promoting the Trump family’s cryptocurrency venture, World Liberty Financial (WLF). Notably, WLF reportedly benefited from a covert partnership with a trading platform operated by Binance. This platform has generated approximately $4.5 billion since the 2024 U.S. elections.
### Impact of the Pardon on Ongoing Investigations
Following the pardon, The Verge reported that the U.S. Department of Justice’s investigation into Binance has effectively come to an end. This development could potentially clear the path for Zhao and Binance to resume their business operations within the United States.
### Binance and Zhao Under Biden Administration Scrutiny
The Biden administration had been rigorously investigating Binance and Changpeng Zhao, especially in the wake of the landmark prosecution of former FTX CEO Sam Bankman-Fried. In late 2023, after charges were filed against Binance and Zhao, the executive pleaded guilty. Binance then began negotiating a plea deal settlement amounting to $4.3 billion.
The scrutiny centered on allegations from the U.S. Securities and Exchange Commission (SEC) that Binance and Zhao violated multiple federal regulations by failing to secure proper licenses and effectively handling securities related to their operations.
### Sentencing and Plea Deal Details
Despite the seriousness of the charges, Zhao received a relatively lenient sentence of four months in prison, short of the recommended 12 to 18 months. As part of his plea deal, Zhao agreed to pay a $50 million fine to the Justice Department and consented to permanently step down from any executive role at Binance.
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This presidential pardon marks a significant turning point in the relationship between regulatory authorities and the cryptocurrency industry, potentially influencing the future regulatory landscape of digital assets in the United States.
https://www.techtimes.com/articles/312347/20251023/president-trump-pardons-binance-founder-changpeng-zhao-after-he-helped-promote-wlf.htm