CZ pardon was considered with ‘utmost seriousness,’ says White House
The White House, after a thorough review process, sent a pardon for Binance founder Changpeng Zhao to President Donald Trump, who defended his decision as correcting an injustice. Zhao was given a reduced prison sentence for not maintaining an effective Anti-Money Laundering program. Trump’s press secretary stated the decision aimed to end the Biden administration’s stance on cryptocurrencies. Speculation has arisen regarding Zhao’s ties to the Trump family’s crypto ventures, which Trump and Zhao’s lawyer denied. In a censored interview segment, Trump downplayed his involvement in crypto, emphasizing the industry's importance for the U.S.
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White House’s Process on Changpeng Zhao’s Pardon
The White House carefully reviewed Binance founder Changpeng Zhao’s pardon through standard processes before sending it to President Donald Trump for approval, according to White House press secretary Karoline Leavitt. In a briefing, she emphasized that the pardon was considered with utmost seriousness and underwent a thorough review process by the Department of Justice and the White House Counsel’s office. Leavitt explained, “There’s a whole team of qualified lawyers who look at every single pardon request that ultimately makes its way up to the President of the United States. He’s the ultimate final decision-maker.”
Trump’s Response to the Pardon and Political Criticism
In an interview with CBS News’ 60 Minutes, Trump defended the pardon, stating that he had “no idea” who Zhao was and dismissed criticism of his decision as politically motivated. Leavitt clarified that Trump’s comments were intended to convey that he does not know Zhao personally and does not have a personal relationship with him. Trump also characterized the pardon as a move to “correct a wrong” and end what the administration sees as excessive regulation against the cryptocurrency industry.
Binance and Alleged Links to Trump’s Crypto Ventures
The pardon follows multiple reports alleging that Binance and Zhao assisted the Trump family’s crypto venture, World Liberty Financial, in developing its stablecoin and facilitating a $2 billion investment deal. Binance CEO Richard Teng has denied these allegations.
Legal Context: Zhao’s Charges and Sentencing
Changpeng Zhao pleaded guilty in November 2023 to failing to maintain an effective Anti-Money Laundering program at Binance, violating the US Bank Secrecy Act. Prosecutors initially sought a three-year jail term; however, the sentencing judge deemed this penalty “too harsh” and instead issued a four-month prison sentence, which Zhao began serving in April 2024. Leavitt described Zhao as being “over-prosecuted by a weaponized DOJ.” Zhao’s lawyer and supporters argued that the sentence was excessive for a non-violent first-time offender with a single charge of compliance failure.
Trump’s Position on Cryptocurrency
In a portion of the 60 Minutes interview that was not broadcast, CBS’s Norah O’Donnell asked Trump if he was concerned about “the appearance of corruption” regarding Zhao’s pardon. Trump avoided directly addressing the question, saying, “I’d rather not have you ask the question.” He instead highlighted that the US was “number one in crypto in the whole world”, underlining the industry’s importance and the need to prevent countries like China from taking the lead. Trump noted that his sons are more involved in crypto than he is, admitting that he knows “very little about it” aside from recognizing its magnitude as a huge industry.
Editing of the CBS Interview
An excerpt from the transcript suggests that CBS condensed portions of the interview for clarity, leaving out key exchanges on cryptocurrency policy. The CBS YouTube video description confirmed these edits, further drawing attention to the cut question regarding potential corruption perceptions related to Zhao’s pardon.