Changpeng Zhao, founder of cryptocurrency exchange Binance Zhao is sometimes referred to as the most powerful man in crypto. He has now survived tremendous legal obstacles by receiving a pardon from former President Donald Trump. Late last year, Zhao accepted culpability by pleading guilty to failure to maintain an anti-money laundering program. This ruling soon resulted in a four-month prison sentence and a $4.3 billion settlement connected to unrelated allegations involving Binance. This pardon is a huge victory personally for Zhao and the contemptible company. It arrives amid a backdrop of extreme speculation and high-wattage lobbying efforts.
Zhao’s legal troubles stemmed from accusations by the U.S. Justice Department that Binance failed to report over 100,000 suspicious transactions to law enforcement. As much as a third of these transactions, according to some reports, have flowed through entities classified as terrorist organizations by the U.S., such as al-Qaida and Hamas. Shortly after he pleaded guilty, Zhao stepped down from CEO of Binance. Since then, the company has been under a cease-and-desist order against any operations in the United States.
All in all, Zhao has weathered the storm fairly well, as he continues to rank among the world’s richest people in cryptocurrency. He has grown the company, Binance, into the world’s largest cryptocurrency exchange. The company’s transactions were hugely important since the company served as chief intermediary and enabler of transactions. These moves dramatically accelerated the expansion of Trump’s World Liberty Financial crypto startup. Earlier this year, Binance closed a $2 billion deal with an Emirati investment fund. The payment for the home was made in accredited cryptocurrency specifically developed by World Liberty Financial.
Since his recent pardon, Zhao has spoken publicly and emphatically rebutting any suggestion that he sought a quid pro quo deal for this extremely favorable outcome. He vehemently disputes those claims.
“Fact: I have had no discussions of a Binance US deal with … well, anyone.” – Changpeng Zhao
The pardon has been met with mixed reactions, especially among elected officials. Several Democratic senators — not just Elizabeth Warren — have raised alarm about the dangers of relaxing such oversight on the crypto industry. They claim in their complaint that Binance has put growth and profits ahead of following U.S. laws.
“As the Administration loosens oversight on an industry where bad actors have violated money laundering and sanctions law, it is not surprising that Binance, which has admitted to prioritizing its own growth and profits over compliance with US law, would seek to roll back the oversight required by its settlement.” – Democratic senators, including Elizabeth Warren
With his pardon now fully granted, Zhao will likely reclaim significant sway over the cryptocurrency market. Given the current economic climate, it is highly likely that anticipated future partnerships and agreements between Binance and other financial institutions or firms are now off the table.