Former Binance CEO Changpeng Zhao has officially filed for a presidential pardon from Donald Trump, citing fairness concerns after serving time for a single BSA violation.
Background
- Changpeng Zhao (CZ), the founder and former CEO of Binance, has confirmed he has submitted a formal request for a presidential pardon from U.S. President Donald Trump.
- Zhao made the announcement during a Farohk Radio podcast released Tuesday, stating that the request was filed two weeks ago through his legal team.
- The move follows Zhao’s four-month prison sentence in April 2024 after pleading guilty to one count of failing to maintain an effective anti-money laundering (AML) program under the Bank Secrecy Act (BSA).
- Zhao was released from prison in September and paid a $50 million fine. Binance itself settled with the U.S. government for $4.3 billion in one of the largest corporate settlements in history.
Why should you pay attention?
- Zhao's case remains notable as he is the only individual in U.S. history to have served prison time for a single BSA violation.
- The pardon request comes amid broader political shifts in Washington, where Trump’s return to office has already seen high-profile clemencies tied to the crypto world, including Ross Ulbricht.
- Zhao's move could mark a precedent for how crypto-related legal cases are revisited under the current administration.
Who said what?
- Changpeng Zhao, on Farohk Radio:
“We only submitted [the pardon request] after the Bloomberg and Wall Street Journal articles came out… If they are writing this article, we might as well just officially apply.”
- Zhao, via X in March, addressing pardon speculation:
“No felon would mind a pardon, especially being the only one in U.S. history who was ever sentenced to prison for a single BSA charge.”
- Zhao denied at the time that he had any discussions related to a Binance US deal or that he had been seeking a pardon, though he left the door open.
- He also clarified: “I'm not really looking to become CEO of Binance again,” confirming that he remains focused on other interests despite being the company’s largest shareholder.
Zooming out
- The pardon request from one of the crypto industry’s most prominent figures highlights the deepening relationship between the digital asset sector and U.S. politics.
- Trump’s stance on crypto has evolved markedly, with his administration appearing more open to the industry. This shift may embolden other industry figures facing regulatory scrutiny to seek political remedies.
- As the U.S. regulatory environment continues to mature, Zhao’s case may serve as a flashpoint in how justice, finance, and technology intersect in this new political era.
