Rumors that Binance founder and former CEO Changpeng Zhao (CZ) may be pardoned are growing stronger in Washington.
Talks have accelerated within the Trump administration regarding a possible presidential pardon for Zhao.
Zhao, considered one of the most influential figures in the cryptocurrency world, pleaded guilty to money laundering in 2023 as part of a plea deal with the US Department of Justice, and Binance agreed to pay a total of $4.3 billion in fines. Zhao personally paid a $50 million fine and resigned from his CEO position, before receiving a four-month prison sentence. Zhao began his sentence in April 2024 and was released in September 2024.
However, some close to Trump believe the Zhao case was “politically motivated.” These circles believe the case is part of the Biden administration’s broader crackdown on the crypto industry. Trump’s team, however, tends to see Zhao’s case as emblematic of a “new era of crypto policy that supports, rather than punishes, innovative technologies.”
Zhao remains Binance’s largest individual shareholder, and a potential pardon could pave the way for his official return to the company.
The “Trump pardon” scenario, long discussed in the crypto community, has resurfaced in recent weeks. The probability given to the question “Will Trump pardon CZ by October 31st?” on prediction platforms is currently at 15%.
Following the rumors, CZ took to social media to share his statement: “Great news if true. But a small correction: There was no fraud involved. I was only convicted of a single violation of the Banking Secrecy Act (BSA). I believe I’m the only person in US history to go to prison for just this one offense, with no other additional crimes or criminal record.”
*This is not investment advice.