Overview
- Zhao, known as CZ, pleaded guilty in 2023 to Bank Secrecy Act violations tied to Binance’s anti-money-laundering failures, stepped down as CEO, paid fines, and served four months in prison as Binance agreed to a roughly $4.3 billion settlement.
- Press Secretary Karoline Leavitt said the pardon ends what the administration calls the previous administration’s war on cryptocurrency, noting prosecutors had sought a much longer sentence.
- Reports indicate Zhao and Binance sought clemency through lobbying, and coverage has detailed links with the Trump family’s World Liberty Financial, including discussions about Binance’s U.S. arm and an Abu Dhabi-backed $2 billion transaction using the family’s stablecoin.
- The pardon removes the criminal conviction but, according to reporting, does not automatically unwind civil or administrative constraints, with Treasury oversight expected to remain even if Justice Department monitorship changes.
- Industry reaction included a jump in Binance’s BNB token and criticism from lawmakers such as Sen. Elizabeth Warren, while analysts say the move could aid Binance’s efforts to expand in the United States.