Bloomberg reported that on October 23 local time, US President Trump has pardoned Changpeng Zhao, co-founder of Binance. This is one of the most significant measures taken by Trump to embrace the cryptocurrency industry and provide legal pardons to some well-known figures in the field.

On the same day, Trump told the media that Zhao had been "persecuted" by the Biden administration, and added that he "had never met Zhao," "many people said he did not commit any wrongdoing, and at the request of many influential people, I pardoned him." After the news was released, the price of BNB, the token associated with Binance, rose immediately.

BNB Price Chart

Changpeng Zhao posted on X website on the same day, saying, "Sincerely thank you for today's pardon. Thank you, President Trump, for upholding America's commitment to fairness, innovation, and justice. We will do our utmost to help America become the 'Capital of Cryptocurrency.'"

When asked if this pardon constituted a quid pro quo, White House spokesperson Levitt stated on the 23rd that the White House lawyers have conducted "very thorough reviews" of each pardon.

The report pointed out that this move is another act of clemency granted by Trump to cryptocurrency entrepreneurs recently, highlighting the stance of the Trump administration positioning itself as a "friend of cryptocurrency" while also revealing that the Trump family has benefited from it. Binance helped a company under the Trump family's portfolio launch a stablecoin, which could bring millions of dollars in revenue annually for the business.

Previously, Trump had used presidential power to overturn multiple charges, which were core elements of the Biden administration's cryptocurrency enforcement agenda. He pardoned Ross Ulbricht, the founder of the Silk Road, who was sentenced to life imprisonment for enabling criminal activities on the dark web, and also pardoned several founders of the cryptocurrency exchange BitMEX.

Changpeng Zhao founded Binance in 2017, and the exchange later became the largest cryptocurrency exchange in the world. In June 2023, the US Securities and Exchange Commission brought 13 charges against Binance and Zhao, including allegedly inflating trading volume, misappropriating customer funds, failing to restrict American customers from using its platform, and misleading investors regarding market supervision controls.

Changpeng Zhao, Co-founder of Binance - Bloomberg

In November 2023, Zhao reached a plea agreement with the US government, serving four months in prison to conclude the years-long investigation into Binance. Binance admitted to involvement in money laundering, unlicensed money transfers, and violations of sanctions, and agreed to pay a $4.3 billion fine.

Zhao was previously incarcerated at the Lompoc Federal Prison in California. After his release, he met with Witkowski, co-founder of "World Free Finance Company," who now serves as Trump's special envoy for Middle East issues.

The report said that Zhao's pardon had long been widely anticipated by his friends, partners, and the entire cryptocurrency industry. Driven by the rumor that the pardon would be implemented, BNB's price hit an all-time high last month; after Trump officially announced the pardon on the 23rd, BNB's price rose again.

Binance and Zhao are key supporters of the Trump family's cryptocurrency enterprise, "World Free Finance Company." Binance wrote the underlying code for the stablecoin USD1 launched by the company and promoted the use of USD1 in a $2 billion transaction, through which MGX Fund, a fund with UAE royal background, acquired part of Binance's equity.

According to the 2023 plea deal, Zhao resigned as CEO of Binance, but he recently modified his social media profile, changing from "former Binance personnel" to "current Binance personnel," which sparked heated discussions on social media.

It is reported that Zhao still holds controlling shares in Binance. After Trump was elected president, Binance's valuation immediately rose sharply; according to the "Bloomberg Billionaires Index," Zhao's current net worth has reached $54.5 billion.

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