Binance Founder CZ Seeks Trump Pardon for Money Laundering Conviction

On May 6, Changpeng Zhao (CZ), founder and former CEO of Binance, confirmed in a Rug Radio podcast that his legal team has formally applied for a presidential pardon from U.S. President Donald Trump to address his 2023 money laundering conviction. The announcement follows Zhao’s four-month prison sentence in 2024 for violating the Bank Secrecy Act (BSA) by failing to implement adequate anti-money laundering (AML) controls at Binance. Zhao’s move comes as Trump’s administration signals a pro-crypto agenda. Trump’s pardons of several individuals closely tied to the cryptocurrency sector, including the three co-founders of BitMEX such as Arthur Hayes, inspired Zhao to propose this pardon application.

Details of the Pardon Request

Zhao’s pardon application stems from his guilty plea in November 2023, which led to a $4.3 billion settlement between Binance and U.S. authorities. As part of the plea, Zhao stepped down as CEO, paid a $50 million fine, and served a four-month sentence in a low-security prison Lompoc II in California, ending in September 2024.

The request follows earlier reports by Wall Street Journal and Bloomberg in March 2025, which claimed Zhao was seeking a pardon alongside discussions with Trump’s family of World Liberty Financial (WLFI) for a potential Binance stake. Zhao denied those claims on X, stating, “I have had no discussions of a Binance US deal with … well, anyone,” but acknowledged,“no felon would mind a pardon, especially being the only one in US history who was ever sentenced to prison for a single BSA charge.” He humorously added, “It’s good to see that even WSJ thinks I should be pardoned.”

Zhao stated that shortly after this denial, he submitted the pardon application. “If they’re writing this article, I may as well just officially apply,” he said. He acknowledged that the pardon request was inspired by Trump’s pardons of the three BitMEX founders, including Arthur Hayes.

Regulatory and Business Context

Zhao’s pardon bid coincides with Binance’s ongoing efforts to navigate U.S. regulatory hurdles. Binance’s U.S. operations are legally independent but owned by the broader company. Due to enforcement actions and other factors, Binance.US has a significantly low market share. According to CoinMarketCap data, Binance.US recorded a 24-hour trading volume of approximately $7.6 million, compared to Binance’s $14.49 billion and Coinbase’s $2.49 billion. A pardon may alleviate regulatory barriers, potentially aiding Binance’s re-entry into the U.S. market.

Earlier this year, Abu Dhabi investment firm MGX committed $2 billion to acquire a stake in Binance, marking the exchange’s first significant institutional investment. At Token2049 in Dubai, Eric Trump announced that this $2 billion investment will be completed using World Liberty Financial’s USD1 stablecoin, launched in March 2025.

Although Zhao previously stated he has no intention of returning as Binance’s CEO, as a symbolic figure for the exchange, a pardon from Trump would undoubtedly provide a significant boost to Binance’s market expansion and recognition.