Changpeng Zhao, the founder of the global cryptocurrency exchange Binance and a convict of money laundering, made headlines when he revealed his application for a pardon from the then U.S. President Donald Trump. This revelation came shortly after he dismissed reports claiming he was pursuing such a pardon.
The Binance founder, also known as CZ, disclosed on a May 6 episode of the Farokh Radio podcast that he would welcome a pardon, adding that his legal team had already submitted the necessary paperwork. “My lawyers are on it,” Zhao remarked, stating that he put in the request after Bloomberg and The Wall Street Journal published reports in March alleging his pursuit of a pardon from Trump in the context of a potential business collaboration between the Trump family and Binance.US.
Zhao initially refuted these reports, but later admitted on the podcast that he figured “if these reports are circulating, I should officially apply.” He also acknowledged that Trump’s pardon of three BitMEX founders, including Arthur Hayes, inspired his application.
Zhao stated that he lodged the application about two weeks earlier. At the time of the Bloomberg and The Wall Street Journal publications, Zhao said that “no convict would reject a pardon” and claimed he is the only individual in U.S. history to have been incarcerated for a Bank Secrecy Act violation.
In November 2023, Zhao pleaded guilty to a money laundering offense as part of a settlement Binance reached with U.S. authorities. The exchange paid a hefty $4.3 billion fine, with Zhao contributing $50 million. Consequently, he was compelled to resign as CEO.
Afterwards, Zhao received a four-month prison sentence and was barred from working at Binance as part of his plea agreement. According to the U.S. Department of Justice, a pardon would not annul Zhao’s money laundering conviction, but it could potentially enable him to reassume a managerial or operational role at Binance.US.
Despite being a Binance shareholder, Zhao stated at Binance Blockchain Week in November that he has “no intentions to return as CEO.” He added, “The team is excelling and doesn’t need me back.”
Since his release from prison, Zhao has undertaken advisory roles in Pakistan and Kyrgyzstan, aiding in cryptocurrency regulation and the implementation of blockchain solutions.
