YEREVAN (CoinChapter.com) — Changpeng Zhao (CZ), former Binance CEO, has dismissed claims that he sought a presidential pardon from Donald Trump or engaged in a business deal between Binance.US and the Trump family. On March 13, the Wall Street Journal reported that CZ had been working to secure a pardon, which could allow him to return to the crypto industry.
In response, CZ posted on X, denying the allegations. He stated,
“No felon would mind a pardon, especially being the only one in U.S. history sentenced for a single Bank Secrecy Act (BSA) charge.”
He also said the report appeared to be part of a larger effort against Trump and the cryptocurrency industry.
Binance Settlement and CZ’s Prison Sentence
In November 2023, Binance reached a settlement with U.S. authorities, agreeing to pay $4.3 billion. As part of the deal, CZ pleaded guilty to violating the Bank Secrecy Act (BSA) due to insufficient Anti-Money Laundering (AML) measures at the exchange.
Following the plea, CZ resigned as Binance’s CEO and was later sentenced to four months in prison. Reports indicated that as part of the agreement, CZ is permanently restricted from operating or managing Binance. The settlement did not resolve Binance’s ongoing legal issues with the U.S. Securities and Exchange Commission (SEC).
What a Trump Pardon Could Mean for CZ
Since CZ has already served his sentence, a pardon from Trump would not erase his conviction. However, the U.S. Department of Justice states that a presidential pardon can remove legal restrictions tied to a conviction. This could potentially allow CZ to re-enter the crypto industry in some capacity.
The Wall Street Journal report claimed that CZ’s allies had tried to connect with Trump’s team to lift restrictions on his involvement in the cryptocurrency sector. However, CZ rejected the claims, stating he had not participated in any business discussions with the Trump family or Binance.US.
SEC Pauses Legal Action Against Binance
The SEC’s civil case against Binance remains unresolved. However, after the departure of former SEC Chair Gary Gensler, the regulator’s stance on crypto enforcement has changed. The SEC requested a 60-day pause in its case against Binance following the appointment of Mark Uyeda as acting chair.
Since Trump returned to office, the SEC has halted multiple investigations into major cryptocurrency firms, including some that contributed to his campaign. The regulator may also be considering ending its civil case against Ripple Labs, signaling a broader shift in the U.S. government’s crypto policy.
