Former Binance CEO Changpeng "CZ" Zhao arrives at federal court in Seattle, Washington, on April 30, 2024. JASON REDMOND / AFP
US President Donald Trump has pardoned the convicted Binance co-founder Changpeng Zhao, the White House said Thursday, October 23, accusing Trump's predecessor Joe Biden of launching an unnecessary "war" against the industry. Binance was created in 2017, and swiftly became the world's largest cryptocurrency exchange by volume, turning Zhao into a billionaire. Following an investigation into the firm's operations, Zhao pleaded guilty to violating US anti-money-laundering laws in late 2023 and served a four-month prison sentence for it in 2024.
Zhao's pardon wipes his criminal record and could help pave the way for Binance to return to the United States, around two years after it agreed to suspend its American operations in a deal to resolve the Department of Justice's criminal investigation. "In their desire to punish the cryptocurrency industry, the Biden Administration pursued Mr. Zhao despite no allegations of fraud or identifiable victims," the White House said in a statement shared with Agence France-Presse. The White House said the Biden administration's decision to prosecute Zhao and to seek a three-year prison sentence for him had "severely damaged the United States' reputation as a global leader in technology and innovation," adding that the "war on crypto" was now over.
