A pardon that has made waves in the crypto industry! After two years of legal battles, US President Donald Trump has pardoned Binance founder Changpeng Zhao (CZ) for allegedly violating the Bank Secrecy Act (BSA). However, Trump’s pardon of CZ sparked hullabaloo when top Democrats denounced it as “pay-to-play corruption” linked to Trump’s crypto interests.
Binance founder pleads guilty in 2023
Changpeng Zhao’s Binance allegedly failed to comply with the US anti-money laundering (AML) laws and processed millions of dollars in illicit financial transactions through the platform. CZ confessed to the crime, stepped down as CEO of Binance, and in April 2024, the US prosecutors sentenced him to four months in prison and imposed a fine of nearly $50 million.
Even though the Binance founder served his prison term and paid the fine, he carried a criminal conviction under US federal law. And that’s the part Trump chose to pardon.
A fuss emerges after Trump pardons CZ
On Thursday, Trump officially pardoned CZ “at the request of a lot of very good people.” In other words, several influential or respected individuals urged the President to grant a pardon to CZ. This triggered political outrage among Democrats.
In an official statement, Democrats wrote that the US is experiencing a shutdown period and federal workers are not receiving pay, alongside other contextual issues. However, the President shows no interest in negotiation, but is “doing massive favors for crypto criminals who have helped line his pockets.”
The opposition team specifically noted that Trump is favoring powerful criminals, pointing out his pardon for Changpeng Zhao.
Following the pardon, CZ took to X to praise Trump and America for their commitment to fairness, innovation, and justice. His concluding quote is also significant as he underscored: “Will do everything we can to help make America the Capital of Crypto and advance web3 worldwide.”
Critiques flow in over Trump’s crypto clemency
A crypto watchdog named MASTR criticized Trump’s action, claiming that Trump’s family business, World Liberty Financial (WLFI), benefited from Binance before the pardon. The author asserted: “Trump moves markets with tweets and Binance can influence everything else in crypto.”
Another X user sarcastically criticized Trump’s decision, stating, “crime is legal”.
Meanwhile, Balaji Srinivasan, the author of the Network State, showed his intense support for Trump’s decision. In his words, the Binance founder’s prosecution was more about public spectacle and politics than real justice. He also wrote that CZ was treated badly because of his Chinese heritage.
Trump’s pardon of the Binance founder Changpeng Zhao has led to different opinions across crypto and political circles. The US is going through tough shutdown repercussions. While supporters celebrate Trump’s decision as a step toward pro-crypto innovation, several critics condemn the act as a symbol of privilege and political favoritism.
