Changpeng “CZ” Zhao was once the face of one of the largest crypto companies in the world, Binance. But he disappeared from the spotlight from 2023 after a conviction. However, now reports are emerging in Washington that Zhao could return to Binance.
CZ may return to Binance
The White House is reportedly considering a presidential pardon for Binance founder Changpeng Zhao. American journalist Charles Gasparino reports this based on sources close to the former CEO.
“Trump would lean toward a pardon,” Gasparino said. According to his sources, several Trump insiders see the case against Zhao as “weak” and believe that the four-month prison sentence imposed was unjustified.
CZ pleaded guilty at the end of 2023 to violating the Bank Secrecy Act (BSA), an American law intended to prevent money laundering. He paid a $50 million fine and has now served his sentence.
A possible pardon would potentially give him space to return to Binance. Zhao is also still the largest shareholder of the exchange.
The Rise and Fall of Zhao
CZ founded Binance in 2017. The exchange subsequently grew into the largest crypto exchange in the world. But in 2023 the stock market came under fire.
US authorities accused Binance of serious lapses in anti-money laundering measures and ignoring sanctions. In November 2023, the company reached a $4.3 billion settlement. As part of this, CZ stepped down as CEO.
Unlike other cases in the crypto sector, such as the fraud case against FTX’s Sam Bankman-Fried, CZ was not accused of fraud. After serving his sentence, Zhao says he will focus on education and investments. He recently invested $1 billion in the BNB ecosystem through his investment fund YZi Labs.
Trump and previous crypto paradons
It would not be the first time for Donald Trump to pardon prominent figures from the crypto sector. Previously, the founders of crypto exchange BitMEX, including Arthur Hayes, were pardoned after being convicted of similar violations of the Bank Secrecy Act.
Ross Ulbricht, founder of the illegal marketplace Silk Road, was also pardoned. On that platform, users could buy drugs and other prohibited goods with Bitcoin (BTC). By the way, a large portion of those seized coins were later added to the US government’s strategic Bitcoin reserve.
Source: https://newsbit.nl/cz-terug-bij-binance-witte-huis-overweegt-gratie-voor-crypto-miljardair/
