Trump Pardons Binance Founder Changpeng Zhao

President Trump issued a pardon for Changpeng Zhao, Binance's convicted founder, ending his criminal record stemming from anti-money-laundering violations.

What's the Scoop?

• Pardon Details: Trump signed the pardon on Wednesday, with the White House stating the move ends the "Biden Administration's war on cryptocurrency." Zhao served four months in prison after pleading guilty in 2023.
• Binance's Legal Troubles: The Justice Department had hit Binance with a record $4.3 billion fine for becoming what prosecutors called a colossal money-laundering hub, barring the exchange from U.S. operations and imposing burdensome oversight.
• Path Back to U.S.: The pardon likely clears the way for Binance, the world's largest crypto exchange with 300 million users, to return to American markets after being banned. The company spent nearly a year pursuing the pardon through lobbyists.
• Trump Family Connections: Since Trump's election, Binance has emerged as a key supporter of World Liberty Financial, the Trump family's crypto venture. The company delivered World Liberty's first major investment — $2 billion paid in USD1, the venture's dollar-pegged cryptocurrency.
• Monitorship Questions: The pardon may prematurely end the Justice Department's three-year Binance monitorship, though a separate Treasury Department monitorship likely remains unless Trump or the Treasury secretary intervenes.

Bankless Take:

This pardon marks yet another example of Trump's willingness to use executive clemency for crypto executives, following Arthur Hayes' pardon in March. The world’s largest exchange could rapidly expand into the U.S., putting pressure on Coinbase and others that make their primary income in the states. But while Binance may now have more operating ability in the U.S., it still needs to make up the trust it lost in the recent liquidation cascade, as well as weather any lawsuits that might have arisen from angry market makers who got caught in the mix.