Trump pardons Binance founder Zhao

Editorial

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“President Trump exercised his constitutional authority by issuing a pardon for Mr Zhao, who was prosecuted by the Biden Administration in their war on cryptocurrency,” says a White House statement.

The pardon has been granted after months of lobbying by Zhao and shortly after The Wall Street Journal reported that the Trump family’s own crypto venture, World Liberty Financial, has been helped by “a partnership with an under-the-radar trading platform quietly administered by Binance”.

Zhao pleaded guilty in 2023 to violating the Bank Secrecy Act and causing a financial institution to violate the same act. He agreed to pay a $50 million fine, quit as CEO and be barred from any involvement in running Binance, which he founded in 2017.

Binance itself reached a deal with the Department of Justice, Treasury Department and CFTC to settle allegations that the exchange failed to maintain a proper anti-money laundering programme, operated an unlicensed money-transmitting business and violated sanctions law.

The world’s largest crypto exchange agreed to forfeit $2.5 billion to the government and pay a fine of $1.8 billion.

Federal prosecutors sought a three year sentence for Zhao but he eventually was given a four month term. “I failed here,” he told the court. “I deeply regret my failure, and I am sorry”.