Former Binance CEO Changpeng “CZ” Zhao publicly rejected a Wall Street Journal (WSJ) report of him seeking a presidential pardon from Donald Trump. The March 13 report alleged that Trump relatives were negotiating to buy a stake in Binance US and that CZ was seeking a pardon following his contentious conviction last year. CZ described such reports as politically motivated.
CZ Speaks on Allegations
Soon after WSJ’s expose, CZ took to social media platform X (previously Twitter) to clarify what they had published. CZ posted, “Sorry to disappoint. The WSJ article got the facts wrong.” CZ insisted that the sources WSJ cited did not substantiate their claims. CZ also proceeded to make it obvious that he never had any such conversations about any deals in respect to Binance US with anyone.
CZ’s prior conviction was a product of a previous court case when Binance paid $4.3 billion in settlement to U.S. regulators in November 2023. He pleaded guilty to Bank Secrecy Act offenses and was given four months in prison. This court ruling consisted of injunctions against him from being in any operational role at Binance for life.
Political Background Underlying Charges
CZ criticized the WSJ article’s timing and tone as an attack on the President and the whole crypto system. He continued further to say, “Feels like the article is motivated as an attack on the President and crypto.” Legal professionals also commented on the wider ramifications of such allegations, and views were that they could be a symptom of the current political tensions surrounding the regulation of cryptocurrencies.
Although a presidential pardon would soften some of the restrictions placed on him after sentencing, it probably would not eradicate the effect of the $4.3 billion settlement. Legal analysts argue that the terms of the settlement would still require careful navigation, regardless of any potential clemency from Trump.
Regulatory Changes on the Horizon
The political environment is changing, especially with what has happened recently when it comes to regulating cryptocurrency under the Trump administration. Reports indicate a potential move toward less stringent regulatory practices.
It has been reported that the Securities and Exchange Commission has placed some enforcement measures against leading crypto firms on ice, perhaps an omen of things to come for such players when it comes to regulation.
CZ believes WSJ’s reporting is part of a larger story to discredit Trump and the cryptocurrency space. He went on, “No felon would complain about a pardon, especially being the sole individual in US history ever sentenced to prison for a sole BSA violation.” This reflects his frustration at the constant questioning of his legal standing.
The juxtaposition between these accusations against the backdrop of a fast-changing regulatory environment is a tightrope for Binance to walk. Zhao still does not abandon his social media tools, implying he would prefer to remain engaged with the cryptocurrency community.
