US President Donald Trump pardoned Binance founder Hangpeng Zhao on Thursday.
Zhao, widely known as CZ, previously pleaded guilty to money laundering violations.
A court sentenced him to four months in prison in April 2024.
Moreover, Binance admitted wrongdoing and agreed to pay a $4.3 billion fine.
White House Defends Decision
The pardon renewed debate over the administration’s support for cryptocurrency.
Critics argued the decision reflected Trump’s personal financial interests in digital assets.
White House Press Secretary Karoline Leavitt denied these claims.
She described Zhao’s prosecution as part of a Biden “war on cryptocurrency”.
Leavitt said Trump corrected what she called an excessive misuse of power.
Industry Influence and Political Ties
Binance spent nearly a year seeking Zhao’s pardon, according to media reports.
Trump had launched his own token shortly before his inauguration in January.
He later eased regulations on crypto operations in the United States.
He also promoted a national cryptocurrency reserve to expand industry adoption.
Zhao Expresses Gratitude
Zhao completed his sentence in September 2024 and later stepped down from leadership.
He thanked Trump for supporting fairness, innovation, and justice in America.
The pardon removes restrictions preventing Zhao from operating financial companies.
However, uncertainty remains about his regulatory status and any future role at Binance.
Concerns Over Conflicts of Interest
Binance called the White House decision incredible news for the exchange.
The platform remains the world’s largest venue for trading digital assets.
It did not address conflict of interest allegations from its US partnerships.
Zhao’s firms previously collaborated with companies linked to Donald Trump.
His sons sit on the advisory board of Dominari Holdings, headquartered in Trump Tower.
Broader Pardons Raise Questions
Trump also ended a fraud case against crypto entrepreneur Justin Sun after his investments.
He pardoned BitMex founders charged with money laundering offenses.
He even granted clemency to Ross Ulbricht, founder of Silk Road.
Critics warned these moves suggest tolerance for financial misconduct within crypto.
Investor Joe Lonsdale said Trump received poor advice on pardons.
He argued the actions made crypto fraud appear widespread around Trump.
