President Donald Trump has pardoned Binance founder Changpeng Zhao, marking a significant shift in U.S. policy toward cryptocurrency firms previously scrutinized by regulators. The move, alongside welcomes for Tether executives, highlights Trump's embrace of the industry despite past concerns over money laundering and sanctions violations. Critics, including Senator Elizabeth Warren, have raised alarms about potential conflicts of interest tied to Trump family ventures.
In a notable pivot from the Biden administration's approach, President Donald Trump pardoned Changpeng Zhao, the founder of Binance, last month. Zhao, often known as CZ, had pleaded guilty in 2023 to federal anti-money laundering violations, resulting in a four-month sentence. Trump described Zhao as "treated really badly by the Biden administration" and "highly respected," calling him "a very successful guy" and a "victim" of a "vicious, horrible group of people" during a CBS "60 Minutes" interview on Sunday. The White House clarified that Trump meant he had no personal relationship with Zhao, emphasizing protocols overseen by Chief of Staff Susie Wiles and Counsel David Warrington to vet pardon applications, particularly those involving alleged weaponization by the prior administration.
This pardon extends Trump's pro-crypto stance, which includes welcoming Tether CEO Paolo Ardoino to the White House at least twice and pardoning Ross Ulbricht, founder of the dark-web marketplace Silk Road, on his second day back in office. Binance, the world's largest crypto trading platform, and Tether, issuer of the largest stablecoin USDT pegged to the U.S. dollar, had faced U.S. scrutiny for potential money-laundering and sanctions issues. No charges were brought against Tether, which has cooperated with law enforcement. Commerce Secretary Howard Lutnick previously vouched for Tether's reserves, stating his firm holds many and that they "have the money they say they have."
Tether is launching a U.S. subsidiary led by former Trump adviser Bo Hines, which is funding a new White House ballroom. Critics link the pardon to Binance's $2 billion stablecoin purchase from World Liberty Financial, backed by Trump's sons, though Zhao's attorney denied any involvement. Senator Elizabeth Warren called it "bribery, right out in the open," citing aid to drug traffickers and terrorists. White House Press Secretary Karoline Leavitt rejected conflict claims, stating the administration aims to make the U.S. the "crypto capital of the world."
Industry voices are mixed: Adam Zarazinski of Inca Digital called it a "paradigm shift" and strategically beneficial for onshoring firms, while Swan Bitcoin CEO Cory Klippsten worried it favors those enriching the Trump family. Republican lawmakers like Senators Cynthia Lummis and Representative French Hill have avoided criticizing the pardon, deferring to presidential authority. Trump has issued clemency to nearly 1,700 recipients since January, focusing on white-collar crimes and alleged injustices.