Trump Pardons Binance Founder Changpeng Zhao Amid Controversy

President Donald Trump has granted a full pardon to Changpeng Zhao, the founder of cryptocurrency exchange Binance, who had previously pleaded guilty to violating U.S. anti-money laundering laws. Zhao, known as "CZ," was fined $50 million and served a four-month prison sentence, which concluded in September.

The White House stated that President Trump exercised his constitutional authority to pardon Zhao, who was prosecuted by the previous administration in their "war on cryptocurrency." The statement declared, "The war on crypto is over."

The Wall Street Journal editorial board criticized the pardon, suggesting it "has the same stench" as previous controversial pardons. The editorial highlighted a $2 billion transaction earlier this year between an Emirati investment fund and a cryptocurrency developed by World Liberty Financial, a company owned by the Trump family. This transaction reportedly provided significant revenue to the Trump-affiliated company and legitimacy to the cryptocurrency.

The editorial noted that Zhao applied for a pardon shortly after facilitating the transaction, allowing readers to "decide if they think the pardon had nothing to do with the investment."

In his plea deal, Zhao admitted to allowing illicit activities on Binance, including transactions involving terrorists, cybercriminals, and foreign adversaries. Reports indicate that at least $890 million was transacted through Binance between the U.S. and Iran.

Venture capitalist Joe Lonsdale, co-founder of Palantir, criticized the pardon, stating, "POTUS has been terribly advised on this; it makes it look like massive fraud is happening around him in this area."

The Wall Street Journal argued that the Founding Fathers anticipated a degree of presidential restraint in the use of pardon powers, suggesting that this pardon challenges that expectation.