Donald Trump signed an executive order pardoning former Binance CEO Changpeng Zhao (CZ), who had been convicted in a money-laundering case. According to The Wall Street Journal, the document was signed on October 22 after extended negotiations and lobbying efforts from Binance.
The pardon could open the door for Binance to resume operations in the U.S. market.
Context
In 2023, the exchange ceased its operations in the United States after pleading guilty to regulatory violations. At that time, the Department of Justice fined the company $4.3 billion and imposed a three-year monitoring period.
In the spring, Binance representatives met with Treasury officials to discuss a possible easing of oversight measures.
WSJ reports that Trump’s decision may shorten the Department of Justice’s supervision period, although the Treasury Department’s control will remain in place unless it is separately revoked by the president or the department’s head.
After Trump’s re-election victory, Binance became one of the key partners in his family’s crypto project, World Liberty Financial. The exchange actively participated in promoting the stablecoin USD1, which became the project’s main financial instrument.
In the spring, Binance attracted the project’s first major investment – $2 billion in USD1 tokens. The exchange also encouraged trading of the new stablecoin on platforms under its control.
According to WSJ sources, the Trump family’s income from this project has already exceeded their earnings from real estate.
Zhao’s Road to Pardon
Binance had sought a pardon for its founder for over a year. Early in 2024, the company hired lobbyist Ches McDowell to push the initiative forward. Zhao was released from prison in September 2024 after serving a four-month sentence.
Earlier reports said Binance had offered a business deal to members of the Trump family as part of its strategy to return to the U.S. market. The Trump family also reportedly held talks about possible participation in Binance’s American division.
At the time, Zhao said he had not discussed any deal directly but made it clear he would not oppose a pardon.
