Binance co-founder Changpeng Zhao received a pardon from US President Trump after serving time in prison for failing to adequately prevent money laundering at the world's largest cryptocurrency exchange.

On Thursday (October 23rd), White House spokeswoman Karoline Leavitt stated:

President Trump, acting in accordance with his constitutional powers, issued a pardon to Mr. Zhao, one of the individuals prosecuted by the Biden administration in the so-called war on cryptocurrency.

The move marks the White House's latest clemency action for a crypto entrepreneur, highlighting the Trump administration's positioning as a crypto-friendly voice.

Changpeng Zhao, who is due to serve a four-month prison sentence in 2024, pleaded guilty to failing to implement adequate anti-money laundering measures at Binance. The guilty plea was part of a larger agreement with the US government that included a $4.3 billion settlement from Binance.

According to previous US government allegations, Binance processed at least 1.1 million transactions in violation of US sanctions between 2018 and 2022, totaling approximately $898 million.

Changpeng Zhao was forced to resign as Binance's CEO in a 2023 plea agreement, but retained a controlling stake in the company. Following Trump's presidential election victory, Binance's valuation surged. According to the Bloomberg Billionaires Index, Changpeng Zhao's net worth reached $54.5 billion.

Binance Coin (BNB), a cryptocurrency associated with Binance, surged following the announcement of Changpeng Zhao's pardon.

Trump's Crypto Investments

Media reports previously stated that World Liberty Financial Inc., one of the Trump family's crypto projects, had discussed potential collaborations with Binance. After Changpeng Zhao was released by US authorities, he met with World Liberty co-founder Steve Witkoff and the president's special envoy to the Middle East.

Trump has repeatedly used his presidential pardon power to overturn cryptocurrency enforcement cases from previous administrations. He previously pardoned Ross Ulbricht, founder of "Silk Road," who was serving a life sentence for enabling criminal activity on darknet markets. Trump also pardoned the founders of the crypto exchange BitMEX.

In early April, the U.S. Department of Justice disbanded its National Cryptocurrency Enforcement Team and announced it would terminate cryptocurrency investigations deemed inconsistent with the administration's policy direction. These moves indicate the Trump administration's focus on deregulating the cryptocurrency industry, particularly exchanges, mixing services, and wallet providers.