President Trump Pardons Former Binance CEO Changpeng Zhao: A New Chapter for Cryptocurrency?
In a significant move that has captured global attention, President Donald Trump has issued a pardon to Changpeng Zhao, the former CEO and co-founder of Binance. This decision, long anticipated by many in the cryptocurrency community, comes after months of speculation. The White House Press Secretary, Karoline Leavitt, confirmed the news, emphasizing that President Trump utilized his constitutional powers to pardon Zhao, who faced prosecution under the Biden Administration’s stringent stance on digital currencies.
The Impact of Trump’s Pardon on Binance
The Biden Administration had previously focused on regulating digital currencies, with particular scrutiny on companies like Binance. In a landmark case in 2023, Changpeng Zhao admitted guilt to breaching U.S. anti-money-laundering (AML) regulations, which resulted in a four-month prison term and a hefty $4.3 billion settlement with U.S. authorities.
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Following the pardon announcement, Binance expressed its gratitude on social media platform X (formerly known as Twitter). The company lauded President Trump for his leadership and his vision of positioning the United States as a global cryptocurrency hub. Binance highlighted Zhao’s significant role in shaping the crypto exchange landscape, committing to continuing its mission of providing a secure, transparent, and user-centric platform that enhances financial access for everyone.
Changpeng Zhao himself voiced his appreciation for the pardon, acknowledging it as an affirmation of America’s dedication to fairness, innovation, and justice. He pledged to contribute towards making the U.S. the epicenter of cryptocurrency and advancing Web3 technology worldwide.
Criticism and Controversy Surrounding the Pardon
Despite the positive reactions from Binance, the pardon has not been without controversy. Industry experts like Adam Cochran have voiced strong objections, labeling the decision as “unacceptable” even by Trump’s standards. Cochran highlighted Zhao’s previous admissions regarding enabling groups such as Hamas and the Wagner Group to use Binance for sanction violations.
Concerns Over Zhao’s Connections to Trump
Adam Cochran raised alarms over Zhao’s connections with Trump-affiliated entities, including Binance’s association with Trump’s World Liberty Financial (WLFI) and collaboration with Dominari Holdings, which involves Trump’s sons. Cochran questioned the necessity of the pardon, considering Zhao had already served his sentence, and argued that it effectively grants Zhao a clean slate, allowing him to regain control over Binance and potentially other financial ventures without oversight.
Cochran concluded that this scenario exemplifies a troubling precedent of “pay-for-crime,” suggesting that financial influence can overshadow legal accountability in America.
Market Reactions and Binance Coin Performance
In the wake of this development, Binance Coin (BNB) experienced a notable surge, climbing to $1,122—a 3.6% increase in just 24 hours. This market reaction underscores the ongoing significance of Binance and its impact on the cryptocurrency market.
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