The ‘Crypto Pardon’: Trump Pardons Binance Founder Changpeng Zhao – Full Details on the Controversial ‘Crypto Pardon’ and Money Laundering Case Reversal

The ‘Crypto Pardon’: Trump Pardons Binance Founder Changpeng Zhao – Full Details on the Controversial ‘Crypto Pardon’ and Money Laundering Case Reversal :

Why Trump Cleared Binance Founder Changpeng Zhao(CZ) of Felony Money Laundering-Full Political Fallout ?

President Trump’s Unconditional Clemency for Billionaire Changpeng Zhao ‘CZ’ Ignites Political Firestorm and Realigns the Future of US Crypto Regulation.

The Presidential Act : Unconditional Clemency for Billionaire CZ

WASHINGTON,D.C. : In a stroke of executive power that will fundamentally reshape the relationship between the United States government and the digital crypto asset industry, President Donald Trump has granted a full and unconditional pardon for Binance founder Changpeng Zhao. Zhao, the billionaire known globally as CZ, had previously pleaded guilty to a felony money laundering-related charge after his exchange, Binance, admitted to massive violations of U.S.law.

The decision, announced late Thursday, immediately became one of the most significant and controversial acts of clemency in modern financial history. It effectively wipes the criminal record clean for the man who built the world’s largest cryptocurrency exchange and who had recently served a four-month prison sentence. The sheer financial and political weight of the pardon has put a spotlight on the future of US crypto regulation and the Trump administration’s hands off approach to digital assets.

White House Defense : Was CZ a Victim of the War on Cryptocurrency ?

The White House was quick to defend the move,framing the pardon as a necessary corrective action.Press Secretary Karoline Leavitt issued a strong statement arguing that Zhao was prosecuted as part of the “Biden Administration’s war on cryptocurrency”.

“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,” Leavitt stated. She emphasized that the prosecution proceeded despite no allegations of fraud or identifiable victims, and criticized the “egregious oversentencing in the Binance case” that federal prosecutors had originally sought.

Zhao, for his part , expressed immediate and deep gratitude on social media.”Deeply grateful for today’s pardon and to President Trump for upholding America’s commitment to fairness, innovation, and justice,” he wrote, adding a pledge to “help make America the Capital of Crypto and advance Web 3 worldwide.”

Legal Background of The Binance Money Laundering Felony and Settlement

Zhao’s legal troubles started from his time as the Binance CEO.In November 2023,he pleaded guilty to one count of violating the Bank Secrecy Act(BSA) by failing to maintain an effective Binance anti-money-laundering program.This failure allowed criminals,including terrorist groups,drug traffickers and sanctioned nations,to transact freely on the platform.

As part of a massive settlement with the Department of Justice, Binance agreed to pay a fine of $4.3 Billion, one of the largest corporate penalties in U.S. history. Zhao himself faced a personal $50 million fine and agreed to step down from his leadership role.Though his four-month prison sentence was considered relatively light compared to the three years requested by prosecutors,the conviction itself was a landmark ruling.

The pardon’s ultimate effect on the corporate settlement,including the requirement for an independent compliance monitor,remains a complex legal question regarding the CZ pardon.

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