Binance Boss Seeks Trump's Clemency
Binance CEO Chirag Zhang (CZ) Admitted Requesting Presidential Pardon from Donald Trump
Changpeng "CZ" Zhao, the swashbuckling founder of Binance, has put in his bid for a presidential pardon from none other than Donald Trump. In a candid conversation on the Farokh Radio podcast, CZ confirmed his legal team filed the pardon application a fortnight ago, following a storm of headlines about his request.
CZ's ran afoul of the law in 2023 during a settlement with U.S. authorities, serving a four-month prison sentence for neglecting an effective anti-money laundering program at Binance. His release came in September last year.
Media Frenzy Leads to Official Pardon Request
The news about the pardon application gained traction after reports from outlets like Bloomberg and The Wall Street Journal in March. These reports suggested that the crypto magnate was exploring a pardon amid discussions about business deals with crypto ventures linked to the Trump family.
"Once the Bloomberg article and the Wall Street Journal article came out, we might as well just file the application," CZ told listeners. Prior to this, CZ had denied the allegations on a social media platform, though he didn't entirely dismiss the possibility of a pardon.
"No felon would mind a pardon, especially being the only one in U.S. history who was ever sentenced to prison for a single Bank Secrecy Act charge," he had said.
Legal Ramifications and Future Plans
The legal troubles for CZ stemmed from his guilty plea in November 2023 as part of a settlement with U.S. authorities. This settlement saw Binance cough up a massive $4.3 billion fine, with CZ contributing a personal $50 million.
As part of the settlement, CZ was barred from working at Binance. He stepped down as CEO as a result. Despite seeking a pardon, CZ has made it clear he has no desire to return to the CEO role at Binance.
"I'm not really looking to become CEO of Binance again," CZ stated, adding, "I feel the team is doing well and doesn't need me back."
November's Binance Blockchain Week saw CZ discussing his future roles in Pakistan and Kyrgyzstan, assisting on matters relating to cryptocurrency regulation and implementing blockchain solutions.
President Trump's Crypto-friendly Clemency
Trump has shown a penchant for granting clemency to cryptocurrency figures, such as Ross Ulbricht, the creator of Silk Road who is synonymous with Bitcoin's early history, and the founders of the BitMEX exchange, including Arthur Hayes. CZ's pardon application might find support in this precedent.
A pardon would not technically wipe away CZ's money laundering conviction, but it could remove restrictions, potentially allowing him to resume a management or operational role in Binance.US.
This pardon request comes at a time when Binance is entering a joint venture with Eric Trump’s crypto firm, World Liberty Financial (WLF), and the UAE-based MGX. The deal involves WLF issuing stablecoins, intending to invest $2 billion in Binance. Trump family ties could benefit financially from this partnership, fueling speculation. However, CZ has denied discussing any business deal related to the pardon application.
Should CZ receive Trump's clemency, his return to Binance leadership could stabilize the company's governance post-conviction, boost his reputation in the crypto community, strengthen ties in U.S. and Middle Eastern markets, and potentially influence investor confidence and regulatory strategies.
- CZ, the founder of Binance, has requested a presidential pardon from ex-president Donald Trump, a move spurred by media reports in March.
- CZ served a four-month prison sentence in 2023 for neglecting an effective anti-money laundering program at Binance, but he has no intention of returning as CEO.
- Trump has a history of granting clemency to cryptocurrency figures, including Ross Ulbricht and the founders of BitMEX exchange, which could bode well for CZ's application.
- If granted clemency, CZ might resume a management or operational role in Binance.US, potentially stabilizing the company's governance post-conviction.
- In November, Binance entered a joint venture with Eric Trump's crypto firm, World Liberty Financial (WLF), and the UAE-based MGX, an agreement worth $2 billion.
- Speculations arise about potential financial benefits for the Trump family from this partnership, but CZ denies any discussions related to the pardon application.
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