Key Takeaways
- Changpeng Zhao, founder of Binance, confirms he has submitted a pardon application to US President Donald Trump.
- CZ was released last year after serving a four-month sentence for failing to maintain an effective anti-money laundering program at Binance.
- Zhao claims he isn’t interested in returning to Binance, where he remains the largest shareholder.
The former crypto world’s golden boy, Changpeng Zhao, Binance co-founder and former CEO, says he has applied for a pardon from US President Donald Trump following his release from prison last year.
Media Stories Published in March
Speaking on the Farokh Radio podcast aired on Tuesday, May 6, 2024, CZ stated that he wouldn’t mind a pardon, adding that his legal team had filed the paperwork a fortnight ago. Zhao referred to two media stories published last March stating that he sought a pardon amid an alleged business deal discussion with a crypto venture linked to the US first family. Zhao stated:
“Sorry to disappoint. The WSJ article got the facts wrong […] no felon would mind a pardon, especially being the only one in US history who was ever sentenced to prison for a single BSA charge. I have had no discussions of a Binance US deal with … well, anyone […] we only submitted after the Bloomberg and Wall Street Journal articles came out.”
Co-founders of BitMEX
While denying the reports at the time, Changpeng Zhao never ruled out the possibility of seeking a presidential pardon. According to him, seeing the news reports prompted him to apply for clemency. He said:
“If they’re writing this article, I may as well just officially apply.”
Additionally, Zhao noted that Trump had pardoned three co-founders of the BitMEX exchange, which encouraged him to seek a pardon.
The Largest Corporate Settlement
Changpeng Zhao was released in September 2024 after serving four months in prison following a 2023 guilty plea for failing to maintain an “effective anti-money laundering program” and Binance. CZ also paid a $50 million fine with cryptocurrency exchange Binance, agreeing to pay $4.3 billion as part of the largest corporate settlement on record so far.
Even as he seeks a pardon, Changpeng Zhao has stated he isn’t interested in returning to Binance, where he remains the largest shareholder of the world’s leading cryptocurrency exchange in trade volumes. He said:
“I’m not looking to become CEO of Binance again.”
Conclusion
Presidential pardons surrounding individuals with ties to the crypto space have made headlines lately, especially after Donald Trump took power as the US President. Last January, Trump pardoned Silk Road creator Ross Ulbricht in a case tied to the earliest days of Bitcoin. Last March, the crypto-centric president also pardoned three co-founders of the BitMEX cryptocurrency exchange, including Arthur Hayes. Since his release from prison, Changpeng Zhao has undertaken an advisory role in Kyrgyzstan and Pakistan on blockchain and cryptocurrency regulation issues.
Frequently Asked Questions
Why did the former CEO of Binance go to jail?
Changpeng Zhao, the founder of the world’s leading cryptocurrency exchange, was sentenced to four months in prison in 2024 after pleading guilty in 2023 for failing to maintain an effective anti-money laundering program.
What crime did Binance commit?
US investigators found that Binance disregarded anti-money laundering Know Your Customer laws, failed to register as a money transmitter, and willfully violated US sanctions tied to the International Emergency Economic Powers Act.
When was CZ released?
Binance founder Changpeng Zhao was released from a correctional facility in California in September 2023 after being held in federal custody for failures that allowed cybercriminals and terrorist groups to trade on the world’s largest cryptocurrency exchange freely.
