Crypto Journalist
Anas Hassan
Crypto Journalist
Anas Hassan
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President Donald Trump pardoned Changpeng Zhao, the convicted founder of crypto exchange Binance, on Wednesday following months of efforts by Zhao to boost the Trump family’s crypto company, according to people familiar with the matter cited by The Wall Street Journal.
Trump recently told advisers he was sympathetic to arguments of political persecution related to Zhao, with many insiders believing “the fraud case against Changpeng Zhao, known in the digital space simply as CZ, was pretty weak, and certainly not something that merited a felony charge and jail time.”
Polymarket odds for CZ receiving a pardon stood at 100%, while prediction markets show his chances of returning to Binance by December 31 surged from 7% to 55% within minutes of the announcement.
Zhao pleaded guilty in November 2023 to failing to maintain an effective anti-money laundering program at Binance.
Former Treasury Secretary Janet Yellen stated, “Binance turned a blind eye to its legal obligations in the pursuit of profit. Its willful failures allowed money to flow to terrorists, cybercriminals, and child abusers through its platform.”
Prosecutors alleged the exchange aided terrorists and facilitated human and drug trafficking. Binance paid $4.3 billion while Zhao paid a $50 million fine and served four months in prison, released September 27, 2024.
Notably, CZ previously denied a March 13 WSJ report alleging he sought a pardon in exchange for a Binance US business deal.
He stated, “More than 20 people have told me they were asked by the WSJ, ‘Can you confirm that CZ made some deal for a pardon?‘” and suggested the article was “motivated as an attack on the President and crypto.”
Despite the denial, Binance, the Emirati firm MGX, and Trump-linked World Liberty Financial drew scrutiny following a $2 billion deal in May involving USD1, WLF’s stablecoin.
Warren and Democratic Senators are Not Fine With a Pardon
Senator Elizabeth Warren wrote to White House Counsel David Warrington in May, stating, “the convergence of Mr Zhao’s pardon application and Binance’s financial entanglements with the President’s family presents urgent concerns regarding the integrity of our justice system.”
Democratic Senator Richard Blumenthal warned back in August that a pardon “lets criminals off the hook to the personal profit of the president and his family and his friends, and unleashes a convicted felon on a virtually unregulated crypto market.“
The pardon comes amid criticism of Binance’s handling of the October 10 market crash, during which technical issues contributed to $19 billion in liquidations.
The exchange has, however, set aside $700 million for affected users, though outrage persisted with comments including “without Binance & CZ, crypto would be so much better” and “I closed my Binance account. It’s just a scam platform.“
However, despite their opposition, this seems like a done deal.
CZ has taken to X to announce himself and show appreciation to the president, and promised to “do everything we can to help make America the Capital of Crypto and advance web3 worldwide.”
SBF Pardon Speculation Grows
Polymarket data shows Sam Bankman-Fried at 9% odds for a Trump pardon in 2025, with Bloomberg reporting that his parents are seeking clemency.
SBF is serving 25 years for using billions in FTX customer funds to make risky bets through Alameda Research without their knowledge.
One FTX victim wrote, “My whole life has been destroyed. I have two young children, one born right before the collapse. Beyond the money, I lost my happiness, my ability to get out of bed, my desire to continue living.“
Earlier this month, SBF stated in prison interviews that handing FTX to CEO John Ray III was “the single biggest mistake I made by far,” maintaining he never defrauded anyone despite a jury finding him guilty of seven counts of fraud and money laundering.
His parents are appealing the conviction, arguing Sullivan & Cromwell wrestled FTX away and profited handsomely while facilitating his prosecution. The law firm billed nearly $250 million in bankruptcy fees.
Other potential pardon candidates on Polymarket include Roger Ver at 17% odds, while CZ remains Binance’s largest shareholder with a 90% stake and an estimated net worth of $75 billion.
The pardon clears Zhao’s criminal record and potentially opens the door for his formal return to the global crypto scene.
However, for SBF, it is most unlikely, as a vote opened a few hours ago by crypto podcaster Wendy O shows that over 70% of participants believe he will not get a pardon next.
BNB Surges 5% as Market Eyes $1,400-$1,500 Targets
BNB jumped 5% to $1,129.05 following the pardon announcement, with traders targeting $1,400 and beyond.
Community sentiment on X turned bullish, with one user stating, “Trump just pardoned CZ. Now we resume $BNB up only szn.”
The token’s immediate breakout above $1,150 resistance would confirm bullish momentum toward the $1,400 psychological level, with potential extension to $1,500 if CZ’s formal return to Binance materializes.
However, failure to hold above $1,100 support could trigger profit-taking and a retest of the $1,050 zone before any sustained rally materializes.
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