Changpeng Zhao Denies Report on Deal with Binance.US and Defends Trump - 13-03-25

Changpeng "CZ" Zhao, the former CEO of Binance, has refuted claims made in a Wall Street Journal report suggesting that he had been actively seeking a federal pardon from U.S. President Donald Trump.

In a post on X on March 13, following the publication of the report, Zhao stated that he had not held discussions regarding a business deal between the Trump family and Binance.US. He also denied the claims that he was seeking a presidential pardon, which could potentially allow him to resume an operational or management role at Binance.

"Any criminal wouldn't care about a pardon, especially someone like me, who is the only person in U.S. history to be sentenced to prison for a single charge of BSA [Bank Secrecy Act] violation," CZ remarked. "It feels like the article is motivated as an attack on the President and the crypto sector, with the lingering forces from the 'war on crypto' from the previous administration still at play."

In November 2023, Binance reached a settlement with U.S. authorities, agreeing to pay $4.3 billion, with Zhao pleading guilty to a charge of violating the Bank Secrecy Act for not maintaining an effective anti-money laundering program at the exchange. Zhao resigned as CEO, was sentenced to four months in prison, and, as part of the settlement, was reportedly permanently banned from managing or operating Binance.

Although CZ has already served his prison sentence, any potential pardon from Trump would not erase his conviction. However, according to the U.S. Department of Justice, a pardon could "ease the legal disabilities imposed due to the conviction," such as possibly lifting restrictions on Zhao's participation in the cryptocurrency industry.

The 2023 settlement with Binance did not resolve the U.S. Securities and Exchange Commission's (SEC) civil case against the cryptocurrency exchange. However, following the departure of the previous SEC Chairman Gary Gensler, and the appointment of Commissioner Mark Uyeda as acting chair, the regulator requested a 60-day pause in the courts.