Donald Trump has granted a presidential pardon to Changpeng Zhao, founder of Binance, the world’s largest cryptocurrency exchange, igniting controversy over potential conflicts of interest.
Zhao had served nearly four months in prison after admitting that Binance failed to implement proper anti–money laundering controls, a lapse prosecutors said enabled criminals and sanctioned entities to move illicit funds through digital currencies.
Critics quickly questioned the decision, noting Trump’s extensive business ties to cryptocurrency ventures, including his family’s firm, World Liberty Financial, which launched the USD1 stablecoin.
Earlier this year, a Middle Eastern fund invested $2 billion in Binance using that same token, linking Zhao’s company to Trump’s own enterprise.
The White House defended the move, with Press Secretary Karoline Leavitt calling the prosecution a “politically motivated war on cryptocurrency” under the Biden administration. She said the pardon followed a “thorough examination” by legal advisers.
Democratic Senator Elizabeth Warren denounced the decision, saying Zhao “pleaded guilty to money laundering, promoted Trump’s crypto ventures, and lobbied for clemency.”
Zhao expressed gratitude on social media, saying he would help make the United States “the capital of crypto.”
Trump insisted he had acted on multiple recommendations, adding he did not know Zhao personally.