Trump Pardons Binance Founder Changpeng Zhao, Igniting Corruption Row
Former CEO 'CZ' was convicted of violating AML laws; Democrats condemn move as corrupt after reports lobbyist close to Trump Jr. was hired for '$450,000'
- Donald Trump has pardoned Binance founder Changpeng Zhao ('CZ'), who was serving a four-month prison sentence for violating Anti-Money Laundering (AML) laws.
- The pardon has ignited a corruption controversy, stemming from reports that Binance hired a lobbyist with close ties to Donald Trump Jr. for $450,000 to seek "assistance from the administration."
- Prominent Democrats, including Senator Elizabeth Warren, have condemned the pardon as an act of "corruption," while the White House defended it as a constitutional use of power.
- The news prompted a positive reaction in the cryptocurrency market, with Binance's BNB token soaring by 8% and lifting other major digital assets.
Former CEO 'CZ' was convicted of violating AML laws; Democrats condemn the move as corrupt after reports that a lobbyist close to Trump Jr was hired for '$450,000'.
The cryptocurrency world has been rocked by the news that Donald Trump has pardoned Changpeng Zhao ('CZ'), the founder and former chief executive of the cryptocurrency exchange Binance, just months after he was jailed for money laundering failures.
The decision has immediately triggered fresh accusations of corruption.
CNBC reported yesterday that President Trump used his constitutional pardon power to exonerate Zhao, who had previously pleaded guilty to intentionally neglecting Anti-Money Laundering (AML) measures while at the helm of Binance. CZ had been sentenced to four months in prison.
The pardon comes less than two years after the US Department of Justice (DOJ) filed multiple charges against Binance and Zhao in 2023, including breaches of AML laws and US sanctions.
Both the company and the CEO admitted guilt and agreed to a massive settlement of over $4 billion, which led to CZ’s resignation.
At the time, Attorney General Merrick Garland and Treasury Secretary Janet Yellen strongly condemned Binance for "prioritising profits over legal obligations."
White House Defence and Lobbying Questions
White House spokesperson Karoline Leavitt defended the decision, stating: "President Trump is exercising his constitutional authority by pardoning Zhao, who was prosecuted by the Biden government on crypto issues."
When asked for the reasoning behind the pardon, Trump was brief: "I don't know, a lot of people recommended him. Many people said he didn't do anything wrong, so I pardoned him at the request of many good people."
The move immediately drew public scrutiny regarding potential conflicts of interest. The Wall Street Journal had previously reported on the Trump family’s cryptocurrency business, which generated billions of dollars in revenue following the 2024 election.
Further fuelling the controversy, NBC News reported that in September, Binance had hired lobbyist Charles McDowell, a close associate of the President's son, Donald Trump Jr.
McDowell's firm revealed it had received $450,000 for seeking "assistance from the administration" and discussing digital finance and crypto asset policy.
Senator Elizabeth Warren (Democrat) was quick to condemn the pardon as a clear example of "corruption."
Market Jumps on News
Following the pardon report, the price of the BNB token—Binance’s native cryptocurrency—soared by 8%. This positive sentiment lifted the wider market, with Bitcoin gaining 3% and Ether up 3.7%.
Zhao took to the X platform to express his gratitude:
'Deeply grateful for today’s pardon and to President Trump for upholding America’s commitment to fairness, innovation, and justice.'
He vowed to use his freedom to advance the sector, adding: 'Will do everything we can to help make America the Capital of Crypto and advance web3 worldwide.'
Analysts suggest the pardon has removed a significant 'obstacle' for both the exchange and its founder, a factor deemed key in pushing token prices higher after a substantial market sell-off earlier in October that wiped out over $600 billion in market value.
