Changpeng Zhao denies reports of a Binance.US deal, defends Trump

Former Binance CEO Changpeng “CZ” Zhao has denied many of the claims in a Wall Street Journal report suggesting that he has been actively seeking a federal pardon from US President Donald Trump.

In a March 13 X post following the release of the report, Zhao said he had no discussions regarding a business deal between the Trump family and Binance.US. He further denied claims that he wanted a presidential pardon from Trump, which could potentially allow him to assume an operational or management role at Binance.

“No felon would mind a pardon, especially being the only one in US history who was ever sentenced to prison for a single BSA [Bank Secrecy Act] charge,” said CZ. “Feels like the article is motivated as an attack on the President and crypto, and the residual forces of the ‘war on crypto’ from the last administration are still at work.”

In November 2023, Binance reached a deal with US authorities requiring the exchange to pay $4.3 billion and Zhao to plead guilty to one count of violating the Bank Secrecy Act for failure to maintain an effective Anti-Money Laundering program at the exchange. CZ stepped down as CEO, was later sentenced to four months in prison, and reportedly was permanently enjoined from operating or managing Binance as part of the deal.

What would a president pardon do for CZ now?

Having already served time in prison, CZ seeking any potential pardon from Trump would not erase the former CEO’s felony charge. However, according to the US Justice Department, a pardon will “facilitate removal of legal disabilities imposed because of the conviction” — e.g., potentially removing any restrictions on Zhao’s involvement with the crypto industry.

Related: Abu Dhabi’s MGX backs Binance with $2B stablecoin investment

The 2023 deal with Binance did not resolve the US Securities and Exchange Commission’s civil case with the crypto exchange. However, after the departure of former SEC Chair Gary Gensler and the appointment of Commissioner Mark Uyeda as acting chair, the regulator filed for a 60-day pause in court. 

Since Trump took office in January, the SEC has dropped several investigations and enforcement actions against major crypto firms, including those who donated to his campaign or inauguration fund.

In addition to halting Binance’s case, the SEC may be considering wrapping up its civil suit against Ripple Labs.

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