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US President Trump Considers Pardon for Binance’s CZ Amid Market Turbulence
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The cryptocurrency sector is abuzz with news that US President Donald Trump may be contemplating a presidential pardon for Changpeng Zhao, better known as CZ, the co-founder and former CEO of Binance. This significant development follows a turbulent period in the crypto market, triggered by Trump’s announcement of a proposed 100% tariff on Chinese imports.
Is CZ Poised for a Return to Binance?
On October 10, Charles Gasparino from Fox Business revealed exclusive insight into discussions within the White House regarding a possible pardon for CZ. Sources suggest that some within Trump’s team believe the legal case against CZ, a Canadian of Chinese origin, may be flimsy and his punishment excessively harsh. In 2023, US officials accused CZ and Binance of breaching the Bank Secrecy Act and neglecting essential anti-money laundering (AML) protocols. The US Department of Justice alleged that Binance facilitated illicit transactions, including those associated with sanctioned nations and criminal networks, notably North Korea’s Lazarus group.
CZ admitted to failing to implement a robust AML program, acknowledging lapses in Binance’s safeguards against illegal activities. This admission was part of a settlement requiring Binance to pay over $4.3 billion in penalties, marking one of the largest corporate fines in US history. Consequently, CZ resigned as Binance’s CEO and began serving a four-month federal prison sentence in April 2024. Although he relinquished direct control, CZ maintained his ownership stake. A presidential pardon could potentially nullify his conviction, but due to Binance’s agreement with the DOJ and ongoing compliance monitoring, CZ might remain distanced from the company’s leadership.
Timing of Presidential Pardon Remains Uncertain
Despite the optimistic outlook for CZ, Gasparino pointed out that a presidential pardon might be delayed due to pressing international issues, such as conflicts in the Gaza Strip and Ukraine, alongside escalating trade tensions with China. Recently, Trump threatened a 100% tariff on all Chinese goods in response to China’s plan to impose extensive export controls starting November 1, 2025. Consequently, the crypto market has suffered a 9.63% decline, now valued around $3.72 trillion. Bitcoin, leading the market, has dropped by 7.81%, with prices hovering around $111,900.
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