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Changpeng Zhao, the founder of the cryptocurrency exchange Binance, is seeking a pardon from President Donald Trump for money-laundering violations.
Zhao has been out of prison for two years and is now pushing for a pardon, backed by a sophisticated influence operation.
Zhao’s campaign is notable even in a time when many seeking pardons are paying substantial fees to lobbyists and lawyers with connections to President Trump.
The implications of Zhao’s pardon could be significant for the cryptocurrency industry. Zhao and his team are employing a variety of strategies that have previously helped wealthy interests secure preferential treatment from President Trump.
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Publicly, Zhao has praised the president’s crypto policies in podcast interviews. Behind the scenes, his team has hired lobbyists with ties to Trump’s circle.
As per the report by The New York Times, Binance has also fostered a business relationship with the Trumps, striking a deal that profited the family’s own crypto firm, World Liberty Financial.
Both Zhao and Binance pleaded guilty to serious crimes in 2023, admitting that a flawed compliance system allowed illicit actors to move money on the platform. However, the Trump administration appears to be considering the possibility of granting clemency.
The White House has received pardon applications from both Zhao and Binance, and according to sources, these applications are currently under review.
The potential political fallout of a pardon for Zhao has been discussed among Trump’s advisors.
Democrats are worried that Trump will grant the pardons to reward Binance for directing business to World Liberty Financial, thereby paving the way for a more profitable partnership. Zhao has dismissed claims that Binance’s dealings with World Liberty are related to his pardon push.
The pardon of Zhao could have far-reaching implications for the crypto industry. If granted, it could set a precedent for other crypto industry leaders facing similar charges.
