{"id":3432,"date":"2025-10-24T14:36:13","date_gmt":"2025-10-24T14:36:13","guid":{"rendered":"https:\/\/pronews.in\/index.php\/2025\/10\/24\/is-trumps-pardon-of-binance-boss-changpeng-zhao-a-conflict-of-interest\/"},"modified":"2025-10-24T14:36:13","modified_gmt":"2025-10-24T14:36:13","slug":"is-trumps-pardon-of-binance-boss-changpeng-zhao-a-conflict-of-interest","status":"publish","type":"post","link":"https:\/\/pronews.in\/index.php\/2025\/10\/24\/is-trumps-pardon-of-binance-boss-changpeng-zhao-a-conflict-of-interest\/","title":{"rendered":"Is Trump\u2019s pardon of Binance boss Changpeng Zhao a conflict of interest?"},"content":{"rendered":"<div aria-live=\"polite\" aria-atomic=\"true\">\n<p>US President Donald Trump\u00a0has <a href=\"http:\/\/www.aljazeera.com\/news\/2025\/10\/23\/trump-pardons-binance-cryptocurrency-founder-changpeng-zhao\" target=\"_blank\" rel=\"noopener\">pardoned<\/a> Binance founder Changpeng Zhao, creator of the world\u2019s largest cryptocurrency exchange, who went to prison last year for failing to prevent criminals from using his platform to launder money connected to child sex abuse, \u201cterrorism\u201d and drug trafficking.<\/p>\n<p>In a statement, White House press secretary Karoline Leavitt said on Thursday that Trump had \u201cexercised his constitutional authority by issuing a pardon for Mr Zhao, who was prosecuted by the Biden Administration in their war on cryptocurrency\u201d.<\/p>\n<section>\n<h2>Recommended Stories <\/h2>\n<p><span>list of 4 items<\/span><\/p>\n<ul>\n<li><span>list 1 of 4<\/span><a href=\"http:\/\/www.aljazeera.com\/news\/2025\/10\/23\/trump-pardons-binance-cryptocurrency-founder-changpeng-zhao\">Trump pardons Binance cryptocurrency founder Changpeng Zhao<\/a><\/li>\n<li><span>list 2 of 4<\/span><a href=\"http:\/\/www.aljazeera.com\/economy\/2025\/7\/18\/trump-says-newly-signed-crypto-law-will-establish-american-dominance\">Trump says newly signed crypto law will establish \u2018American dominance\u2019<\/a><\/li>\n<li><span>list 3 of 4<\/span><a href=\"http:\/\/www.aljazeera.com\/economy\/2025\/7\/17\/us-house-sends-crypto-genius-act-to-trump-in-win-for-industry-advocates\">US House sends crypto \u2018GENIUS Act\u2019 to Trump, in win for industry advocates<\/a><\/li>\n<li><span>list 4 of 4<\/span><a href=\"http:\/\/www.aljazeera.com\/economy\/2025\/7\/14\/what-is-the-uss-crypto-week-why-has-bitcoin-hit-a-record-high\">What is the US\u2019s Crypto Week? Why has Bitcoin hit a record high?<\/a><\/li>\n<\/ul>\n<p><span>end of list<\/span><\/section>\n<p>Zhao and Binance have been closely linked to the Trump family\u2019s crypto companies. As such, the president\u2019s decision to pardon Zhao is viewed by some as a conflict of interest. US economist and former Labor Secretary Robert Reich called Trump\u2019s move part of a \u201cPay-to-Pardon Scheme\u201d.<\/p>\n<p>In response to the announcement, Zhao said on Thursday: \u201cDeeply grateful for today\u2019s pardon and to President Trump for upholding America\u2019s commitment to fairness, innovation, and justice.\u201d A token associated with Binance \u2013 BNB \u2013 rallied by 8 percent following Trump\u2019s decision.<\/p>\n<figure id=\"attachment_4057206\" aria-describedby=\"caption-attachment-4057206\"><img decoding=\"async\" data-recalc-dims=\"1\" loading=\"lazy\" src=\"http:\/\/www.aljazeera.com\/wp-content\/uploads\/2025\/10\/GettyImages-1244426470-1761307957.jpg?w=770&#038;resize=770%2C549&#038;quality=80\" alt=\"Zhao\" fetchpriority=\"low\"><figcaption id=\"caption-attachment-4057206\">Changpeng Zhao, cofounder and CEO of Binance, speaks at the Media Village during Web Summit 2022 at the Altice Arena in Lisbon, Portugal [Ben McShane\/Sportsfile for Web Summit via Getty Images]<\/figcaption><\/figure>\n<h2 id=\"what-was-zhao-found-guilty-of\">What was Zhao found guilty of?<\/h2>\n<p>Zhao was released from prison in September 2024, after serving a four-month sentence for violating the US Bank Secrecy Act. He was the first person to ever serve prison time for breaking that law, which was passed in 1970.<\/p>\n<p>The act requires that financial institutions know their customers, monitor their transactions and file reports of suspicious customer activity. Prosecutors said no one had ever violated the rules to the extent that Zhao did between 2017 and 2024.<\/p>\n<p>In his ruling, the judge for the Western District of Washington said he had been disturbed by Zhao\u2019s decision to ignore any US banking rules that appeared to check Binance\u2019s growth. \u201cBetter to ask for forgiveness than permission,\u201d was Zhao\u2019s approach to US law, prosecutors claimed.<\/p>\n<p>Over the course of seven years, prosecutors said Binance had facilitated more than 1.5 million virtual currency trades \u2013 totalling roughly $900m \u2013 which violated US laws and sanctions, including ones involving al-Qaeda and Iran.<\/p>\n<p>In addition, investigators said drug traffickers and networks linked to child sexual exploitation used Binance to move and convert illicit funds anonymously. The exchange\u2019s weak customer verification system and tolerance for high-risk transactions made it a hub for illegal operations, they alleged.<\/p>\n<p>Zhao, 47, pleaded guilty in November 2023 to one count of not monitoring money-laundering at his company and was barred from operating in the US. The firm also agreed to pay $4.3bn to settle other allegations from the Department of Justice.<\/p>\n<p>\u201cI failed here,\u201d Zhao told the court last year during sentencing. \u201cI deeply regret my failure, and I am sorry.\u201d<\/p>\n<p>Zhao grew up in rural China before his family emigrated to Canada following the 1989 Tiananmen Square massacre. As a teenager, he was fascinated by the technology industry and went on to study computer science at McGill University in Canada. He cofounded Binance in 2017.<\/p>\n<p>The pardon will lift restrictions that prevented Zhao from running ventures in the US again. In particular, it could pave the way for him to return to Binance, which has continued operating since Zhao\u2019s arrest.<\/p>\n<p>He is best known as the former archrival of Sam Bankman-Fried, the founder of FTX, the world\u2019s second-largest crypto exchange before it collapsed in 2022. Bankman-Fried was convicted of stealing $10bn of customer funds and was <a href=\"http:\/\/www.aljazeera.com\/news\/2024\/3\/28\/former-crypto-mogul-sam-bankman-fried-sentenced-to-25-years-in-prison\" target=\"_blank\" rel=\"noopener\">sentenced to 25 years\u00a0in jail<\/a>.<\/p>\n<h2 id=\"why-has-trump-pardoned-zhao\">Why has Trump pardoned Zhao?<\/h2>\n<p>\u201cA lot of people say that he wasn\u2019t guilty of anything,\u201d Trump said at a White House briefing on Thursday. \u201cHe served four months in jail, and they say that he was not guilty of anything.\u201d He also said he\u2019d \u201cbeen told \u2026 that what he did is not even a crime\u201d.<\/p>\n<p>\u201cI gave him a pardon at the request of a lot of very good people,\u201d added Trump.<\/p>\n<p>Announcing the pardon, Karoline Leavitt, White House press secretary, told reporters that the White House counsel\u2019s office had \u201cthoroughly reviewed\u201d the request.<\/p>\n<p>Leavitt claimed that the administration of former President Joe Biden had pursued \u201can egregious over-sentencing\u201d in Zhao\u2019s case, was \u201cvery hostile to the cryptocurrency industry\u201d and that Trump \u201cwants to correct this overreach\u201d.<\/p>\n<h2 id=\"what-is-trump-s-approach-to-the-crypto-industry\">What is Trump\u2019s approach to the crypto industry?<\/h2>\n<p>During his presidential campaign last year, Trump promised to take a friendlier approach to the crypto industry than his predecessor had. He won large campaign donations from cryptocurrency players.<\/p>\n<p>Since returning to office in 2025, Trump has loosened regulations in the sector, <a href=\"http:\/\/www.aljazeera.com\/news\/2025\/3\/4\/trump-announces-us-crypto-reserve-what-it-is-and-why-it-matters\" target=\"_blank\" rel=\"noopener\">sought to establish a national cryptocurrency reserve<\/a> and disbanded the government\u2019s crypto-related\u00a0enforcement team.<\/p>\n<p>Zhao\u2019s pardon is the latest move by the White House to offer clemency to convicted crypto entrepreneurs in the US. In February, the Trump administration halted a fraud case against crypto entrepreneur Justin Sun, who had ties with World Liberty Financial. Trump has also pardoned the cofounders of crypto exchange BitMEX, who were charged with breaking the US Bank Secrecy Act in 2022.<\/p>\n<p>On Thursday, however, Joe Lonsdale, cofounder of Palantir, a data software company, wrote on X that while he supported Trump, the president had been \u201cterribly advised\u201d on recent pardons. \u201cIt makes it look like massive fraud is happening around him in this area,\u201d he <a href=\"https:\/\/x.com\/JTLonsdale?utm_source=chatgpt.com\" target=\"_blank\" rel=\"noopener\">said<\/a>.<\/p>\n<p>Elsewhere, Democratic Senator Elizabeth Warren, who has been outspoken in her criticism of the president\u2019s links to the crypto industry, blasted the decision over Zhao in a statement as a \u201ckind of corruption\u201d.<\/p>\n<h2 id=\"is-this-a-conflict-of-interest\">Is this a conflict of interest?<\/h2>\n<p>Critics of Trump say there is a conflict of interest in his pardoning of Zhao. Robert Reich, an economist and former labor secretary under President Bill Clinton, wrote on <a href=\"https:\/\/x.com\/RBReich\/status\/1981395189064208692\" target=\"_blank\" rel=\"noopener\">X<\/a> that it \u201ccomes after Zhao helped boost the Trump family\u2019s crypto business\u201d and called the pardon an \u201cexample of Trump\u2019s Pay-to-Pardon scheme\u201d.<\/p>\n<blockquote>\n<p lang=\"en\" dir=\"ltr\">Trump has pardoned billionaire crypto mogul and Binance founder Changpeng Zhao \u2014 who pled guilty to money laundering charges.<\/p>\n<p>This comes after Zhao helped boost the Trump family\u2019s crypto business.<\/p>\n<p>It&#8217;s just the latest example of Trump&#8217;s Pay-to-Pardon Scheme. <a href=\"https:\/\/t.co\/WS6vZEsxZB\">pic.twitter.com\/WS6vZEsxZB<\/a><\/p>\n<p>\u2014 Robert Reich (@RBReich) <a href=\"https:\/\/twitter.com\/RBReich\/status\/1981395189064208692?ref_src=twsrc%5Etfw\">October 23, 2025<\/a><\/p>\n<\/blockquote>\n<p>The president and his family have their own crypto firm \u2013 World Liberty Financial \u2013 and have had close dealings with Binance.<\/p>\n<p>In March 2025, World Liberty Financial launched its own \u201cstablecoin\u201d \u2013 a dollar-pegged cryptocoin backed by US treasuries \u2013 called USD1. This was issued on Binance\u2019s blockchain \u2013 a decentralised, digital ledger. In addition, Binance promoted USD1 to its 275 million users.<\/p>\n<p>USD1 was also supported by an investment fund in the United Arab Emirates, MGX Fund Management Limited, which used $2bn worth of the World Liberty stablecoin to buy a stake in Binance.<\/p>\n<p>According to the New York Times, that deal alone could generate tens of millions of dollars for the Trumps. But the White House has previously stated that Trump has no conflicts of interest with Binance as his crypto assets are held in a trust and not overseen by him.<\/p>\n<p>Still, as of September, Trump reportedly held almost 15.75 billion in World Liberty Financial tokens, worth more than $3.4bn, making crypto the most significant source of his fortune, which includes real estate assets.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>US President Donald Trump\u00a0has pardoned Binance founder Changpeng Zhao, creator of the world\u2019s largest cryptocurrency exchange, who went to prison last year for failing to prevent criminals from using his platform to launder money connected to child sex abuse, \u201cterrorism\u201d and drug trafficking. In a statement, White House press secretary Karoline Leavitt said on Thursday &#8230; <a title=\"Is Trump\u2019s pardon of Binance boss Changpeng Zhao a conflict of interest?\" class=\"read-more\" href=\"https:\/\/pronews.in\/index.php\/2025\/10\/24\/is-trumps-pardon-of-binance-boss-changpeng-zhao-a-conflict-of-interest\/\" aria-label=\"Read more about Is Trump\u2019s pardon of Binance boss Changpeng Zhao a conflict of interest?\">Read more<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-3432","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"_links":{"self":[{"href":"https:\/\/pronews.in\/index.php\/wp-json\/wp\/v2\/posts\/3432","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/pronews.in\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/pronews.in\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/pronews.in\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/pronews.in\/index.php\/wp-json\/wp\/v2\/comments?post=3432"}],"version-history":[{"count":0,"href":"https:\/\/pronews.in\/index.php\/wp-json\/wp\/v2\/posts\/3432\/revisions"}],"wp:attachment":[{"href":"https:\/\/pronews.in\/index.php\/wp-json\/wp\/v2\/media?parent=3432"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/pronews.in\/index.php\/wp-json\/wp\/v2\/categories?post=3432"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/pronews.in\/index.php\/wp-json\/wp\/v2\/tags?post=3432"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}