Donald Trump has pardoned the founder of the world’s largest cryptocurrency exchange – amid conflict of interest allegations.
Changpeng Zhao spent nearly four months behind bars last year after admitting that Binance failed to maintain an effective anti-money laundering program.
Prosecutors in the case had alleged that inadequate controls allowed criminals to move illicit funds using cryptocurrencies, including child sex offenders, drug traffickers, terrorists and sanctioned countries.
Mr. Trump’s decision to offer clemency drew criticism from some ethics experts, given that the president’s business empire includes several crypto firms.
White House press secretary Karoline Leavitt rejected the conflict of interest allegations and argued that Joe Biden’s administration pursued Zhao as part of a “war on cryptocurrency.”
She told reporters: “The president and the White House review every pardon request that comes to the president’s desk very thoroughly.
“I spoke with our top White House lawyer about the pardon after it happened. This was a case that was over-prosecuted by the Biden administration.”
But Democratic Senator Elizabeth Warren – a staunch skeptic of the crypto space – criticized the pardon.
“First, Changpeng Zhao pleaded guilty to a criminal charge of money laundering. Then, he boosted one of Donald Trump’s crypto businesses and lobbied for a pardon. Today, Donald Trump did his part and pardoned him,” she wrote on X.
Binance declined to respond to his claims.
Mr Trump’s family is involved in a crypto company called World Liberty Financial, which launched a digital asset called USD1 – a stable coin whose value is pegged to the dollar.
Earlier this year, a Middle Eastern investment fund announced it would invest $2 billion in Binance using $1, creating a direct link between the two men’s businesses.
Mr Trump’s latest financial disclosure report reveals he earned more than $57m (£42.7m) in 2024 from World Liberty Financial.
In an article on
He added: “We will do everything we can to help make America the crypto capital. »
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Speaking to reporters, Mr Trump argued that Zhao had been repeatedly recommended for pardon – and “a lot of people say he wasn’t guilty of anything”.
The president added that he did not believe he had ever personally met the contractor.
