President Trump pardons Binance founder Changpeng Zhao

Changpeng Zhao, founder of the world’s largest cryptocurrency exchange Binance, has been pardoned by US President Donald Trump.

Zhao, also known as “CZ”, was sentenced to four months in prison in April 2024 after pleading guilty to violating US money laundering laws.

Binance was ordered to pay $4.3bn (£3.4bn) after a US investigation found it helped users bypass sanctions.

A White House official confirmed to the BBC Zhao has been pardoned, which was first reported by the Wall Street Journal.

Binance has been approached for comment.

The exchange, which is registered in the Cayman Islands, remains the world’s most popular platform for buying and selling cryptocurrencies and other digital assets.

According to the WSJ, the company has spent nearly a year pursuing a pardon for its former boss, who completed his four month prison sentence in September 2024.

Zhao stepped down from the company in November 2023.

He wrote in a post on X it was “not easy to let go emotionally” but “the right thing to do”.

“I made mistakes, and I must take responsibility,” he said.

US officials at the time accused Binance and Zhao of “wilful violations” of its laws – saying they had threatened the US financial system and national security.

“Binance turned a blind eye to its legal obligations in the pursuit of profit,” said then-Treasury Secretary Janet Yellen.

“Its wilful failures allowed money to flow to terrorists, cybercriminals, and child abusers through its platform.”

The move to pardon Zhao comes amid the Trump administration’s adoption of a more friendly stance towards cryptocurrency than his predecessors.

The President has vowed to make the US the “crypto capital” of the world and made his own mark in the digital currency landscape by releasing his own coin shortly ahead of his inauguration in January.

Since then, he has sought to establish a national cryptocurrency reserve and pushed for making it easier for Americans to use retirement savings to invest in them.