Former Binance CEO Changpeng “CZ” Zhao suggested that he would be open to receiving a federal pardon from United States President-elect Donald Trump for a felony charge.
In a Dec. 1 reply to TelosX co-founder John Lilic on X, Zhao said he “wouldn’t mind a pardon” from Trump, who is scheduled to be inaugurated as the 47th US president on Jan. 20.
As part of a settlement with authorities in November 2023, the former Binance CEO pleaded guilty to a criminal charge related to his failure to maintain an effective Anti-Money Laundering program at the crypto exchange.
After his guilty plea, a judge sentenced Zhao to serve four months in prison. He was released in September, but his record still reflects the federal charge, potentially impacting future business activities.
According to the US Justice Department, a presidential pardon would not “expunge or erase the conviction” of Zhao; however, it would “facilitate removal of legal disabilities imposed because of the conviction, and should lessen to some extent the stigma arising from the conviction,” and a pardon “may be helpful in obtaining licenses, bonding, or employment.”
Zhao’s involvement with Binance
After founding Binance in 2017, CZ resigned as CEO as part of the 2023 agreement with prosecutors but said he would “remain available to the team to consult as needed.” His reply on X reiterated that he had “no wish to be CEO again.”
Richard Teng, who stepped into Zhao’s position after the settlement, said in September that the former CEO had a lifetime ban from managing or operating the crypto exchange. The statement suggested that CZ would be unlikely to assume any significant role at Binance even if he were to receive a presidential pardon.
Trump is facing his own troubles as a convicted felon
In May, a New York jury found Trump guilty of 34 felony charges related to falsifying business documents for a $130,000 payment to adult film star Stormy Daniels. The verdict marked the first time in history any current or former US president was convicted of a felony.
Trump was scheduled to be sentenced on Nov. 26, but after the results of the US election in which he won a plurality of the vote, a judge pushed back the hearing until both prosecutors and defense attorneys could file arguments about the proceeding. Many legal experts suggested he was unlikely to face sentencing before taking office on Jan. 20.
Related: How Trump’s victory has divided the crypto community
The president-elect had been facing other state and federal charges prior to the election, as well as a judgment for hundreds of millions of dollars in disgorgement and damages related to civil lawsuits for fraud and defamation. Because Trump’s New York felony conviction is based on state charges, it is not subject to a presidential pardon — he floated the idea of pardoning himself for federal crimes in his first term.
First presidential action for Silk Road founder?
Though Trump did not appear to mention CZ during his presidential campaign, he made many promises to crypto users, including commuting the sentence of Ross Ulbricht , the creator of the Silk Road marketplace.
Ulbricht was sentenced to life in prison without the possibility of parole in 2015 for money laundering, computer hacking and conspiracy to traffic narcotics.
Trump said in May that he intended to commute Ulbricht’s sentence “on day one,” suggesting he would take action on Jan. 20. However, many in the industry also called on the then-US president to help the Silk Road founder during his first term from 2017 to 2021. Trump didn’t commute his sentence at that time.
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