Sources close to Changpeng “CZ” Zhao, the former CEO of Binance, say internal discussions within the White House are gaining momentum regarding a possible presidential pardon. Veteran reporter Charles Gasparino first broke the scoop, citing Trump insiders who view the original prosecution as weak and disproportionate.
In response, CZ wrote on X, “Thank you, Charles. Great news if true,” and corrected a detail: “There were no ‘fraud’ charges … I pleaded to a single violation of the Banking Secrecy Act (BSA).” He also suggested he might be the only person in U.S. history sentenced to prison for just one BSA violation without additional offenses.
CZ’s legal history is well documented. In November 2023, he pleaded guilty to violating the Bank Secrecy Act in relation to Binance’s anti-money laundering controls, as part of a sweeping settlement in which Binance paid more than $4.3 billion.
He was sentenced in April 2024 to four months in prison and released later that year. Proponents of a pardon argue that the punishment was excessive, especially given the absence of fraud charges.
However, concerns persist among White House insiders about the optics, given Trump’s own crypto-related interests, including ventures like the TRUMP meme coin. A final decision is expected soon, though such processes sometimes drag on.
If granted, a pardon could alter the governance dynamics at Binance. CZ remains the company’s largest shareholder, and a clemency could open pathways for his return in some capacity.
Some observers believe the case against him was partly a reaction to the broader regulatory pressure on the crypto sector following events like the FTX collapse. At its core, the unfolding pardon debate underscores tensions in U.S. crypto policy, balancing accountability, political symbolism, and the strategic desires of high-profile industry figures.