In a significant political move, former President Donald Trump has issued a pardon for Changpeng Zhao, the founder of the Binance cryptocurrency exchange. This decision follows extensive discussions between the Trump family and Zhao, sparking a wave of reactions from both supporters and critics of the former president.

Zhao, who is often known by his initials ‘CZ’, is based in Abu Dhabi and was previously sentenced to four months in prison. His conviction was for violations of the Bank Secrecy Act, specifically for failing to adhere to anti-money-laundering regulations in 2024.

After receiving the pardon, Zhao expressed his commitment to supporting the United States in becoming the leading hub for cryptocurrency, declaring his intent to help establish America as the “Capital of Crypto.”

Since Zhao’s release, Binance, recognized as the largest crypto exchange globally, has been actively working to secure his pardon. This development could potentially allow the company to re-enter the U.S. market, after being prohibited from operating there in 2023. The Wall Street Journal was the first to report on the pardon, highlighting its potential implications.

White House Press Secretary Karoline Leavitt commented on the matter, stating, “This case was over-prosecuted by the Biden administration. Even the judge acknowledged an excessive sentencing effort. The previous administration’s stance was notably adversarial.” These remarks reflect ongoing debates regarding the fairness of Zhao’s initial prosecution.

‘This was an overly prosecuted case by the Biden administration,’ White House Press Secretary Karoline Leavitt told reporters on Thursday. ‘Even the judge indicated that the Biden administration was pursuing an egregious over-sentencing of this individual, and the previous administration was very hostile.’

The pardon immediately ruffled feathers among Trump’s allies and critics.

‘I love President Trump; this is possibly the greatest admin of my lifetime – except for these pardons,’ billionaire tech entrepreneur and Trump donor Joe Lonsdale reacted on X. ‘If I’m calling balls and strikes, these are hit-by-pitches!’

Former Binance CEO Changpeng ‘CZ’ Zhao, a crypto billionaire, was sentenced to four months in jail for anti-money-laundering violations last year. Trump, who’s sons deal in the crypto space, pardoned CZ on Thursday

Trump’s team said CZ had been pardoned because the Biden administration ‘was very hostile’ to the crypto founder 

‘POTUS has been terribly advised on this; it makes it look like massive fraud is happening around him in this area,’ Lonsdale continued. 

Journalist Isaac Saul added: ‘Changpeng Zhao is comically corrupt. And he just successfully won a pardon from Trump by boosting the Trump family crypto coin. 

‘I mean, this is a months-long scandal in any other normal administration.’

Since Trump was elected, Binance has played a large role in supporting Trump’s family crypto venture World Liberty Financial (WLF), the vehicle responsible for most of the President’s new wealth generation.

WLF, which is led by Trump’s sons and Zach Witkoff, son of Trump’s Special Envoy to the Middle East, Steve Witkoff, recently announced a $2 billion investment fund in the United Arab Emirates, where CZ lives, for the nation to purchase a stake in Binance using USD1, a crypto coin operated by WLF. 

WLF is expected to profit off of the deal as the company makes money when its coins, like USD1, are used for transactions. Binance has also encouraged its users to trade USD1 on its platform. 

The Trump-backed crypto firm has boasted about its connections to CZ, who is by all measures the most successful crypto entrepreneur in history through his creation of Binance and investments in other industry projects. 

Trump has granted over 1,500 pardons and commutations since taking office in January. 

CZ is now promising to ‘help make America the Capital of Crypto’

On Inauguration Day, Trump pardoned more than 1,500 individuals for offenses related to the January 6 Capitol riot. 

He has also given pardons this year to former Republican lawmakers George Santos, Michael Grimm and John Rowland.

Reports indicate that Fred Daibes, a New Jersey businessman convicted of bribing ex-Senator Bob Menendez, Democrat for New Jersey, with $1 million worth of gold bars, is also seeking help from Trump to avoid his seven-year prison sentence.