Changpeng Zhao, the founder of Binance, has made headlines after revealing that he has applied for a pardon from former President Donald Trump. This comes shortly after Zhao denied earlier reports about seeking a pardon, which surfaced amid discussions of a potential business deal between Binance.US and the Trump family.
Key Takeaways
- Changpeng Zhao, known as CZ, has applied for a pardon from Donald Trump.
- He previously denied reports of seeking a pardon but later confirmed it on a podcast.
- Zhao was convicted of money laundering and sentenced to four months in prison.
- A pardon could allow him to take on a management role at Binance.US.
Background on Zhao’s Conviction
In November 2023, Zhao pleaded guilty to a money laundering charge as part of a settlement between Binance and U.S. authorities. The settlement included a hefty fine of $4.3 billion, with Zhao personally contributing $50 million. As a result of the plea deal, he was sentenced to four months in prison and was barred from holding any operational role at Binance.
Zhao’s conviction marked a significant moment in the cryptocurrency industry, as he claimed to be the only individual in U.S. history to serve time for a Bank Secrecy Act violation. This has raised questions about regulatory practices and the future of cryptocurrency exchanges in the U.S.
The Pardon Application
During a recent episode of Farokh Radio, Zhao stated that he “wouldn’t mind” receiving a pardon and confirmed that his legal team had already submitted the necessary paperwork. He mentioned that the application was filed about two weeks ago, following reports from Bloomberg and The Wall Street Journal that he was pursuing a pardon.
Zhao’s motivation for seeking a pardon was partly influenced by Trump’s previous pardons of three founders of BitMEX, a cryptocurrency derivatives exchange. He expressed that if media outlets were discussing his potential pardon, it made sense to formally apply for one.
Implications of a Pardon
While a pardon from Trump would not erase Zhao’s conviction, it could potentially allow him to resume a management or operational role at Binance.US. This is significant as Zhao remains a shareholder in Binance, despite stepping down as CEO. He has publicly stated that he has no intention of returning to the CEO position, believing that the current team is capable of leading the company effectively.
Zhao’s Current Activities
Since his release from prison, Zhao has taken on advisory roles in countries like Pakistan and Kyrgyzstan, focusing on cryptocurrency regulation and blockchain implementation. His involvement in these regions highlights his ongoing commitment to the cryptocurrency space, even as he navigates the legal challenges stemming from his conviction.
As the situation develops, the cryptocurrency community will be watching closely to see how Zhao’s application for a pardon unfolds and what it could mean for the future of Binance and the broader crypto industry.
