Donald Trump has pardoned Changpeng Zhao, the convicted founder of the Binance cryptocurrency exchange, Reuters has reported.
It is another element of the legal and reputational clawback for the man who signed a memorandum of understanding with David Burt, the Premier and Minister of Finance, in 2018, before Zhao’s fall from grace.
It is also the most recent reversal after the US Securities and Exchange Commission dismissed its civil lawsuit against Binance in May.
Reuters said today that the White House called it the latest move by the US President to boost the crypto industry and expunge its past misdeeds.
Zhao, a billionaire who is one of the most influential figures in crypto, sported Bermuda shorts seven years ago as he signed the Bermuda MOU which promised some 40 jobs; up to $10 million in university-level training for Bermudians in blockchain technology development and regulatory compliance; up to $5 million for investments in new Bermudian-based blockchain companies; and help in the building of Bermuda’s fintech regulatory framework.
The Canadian citizen, who was born in China, was sentenced to four months in prison last year after pleading guilty in 2023 to violating US laws against money laundering at the world’s largest cryptocurrency exchange.
Prosecutors claimed the Binance model welcomed criminals and failed to report more than 100,000 suspicious transactions with terrorist groups, including Hamas, al-Qaeda and the Islamic State.
They claimed Binance supported the sale of child sexual abuse materials and received a large portion of ransomware proceeds.
The company agreed to a $4.32 billion penalty, and Zhao paid a $50 million criminal fine plus $50 million to the US Commodity Futures Trading Commission.
Reuters said: “Since he returned to office, [Mr] Trump’s family has reaped millions of dollars from a variety of crypto ventures — moves criticised by political rivals and ethics experts, citing the potential for conflicts of interest. The White House has denied those claims.”
Reuters added: “In a post on social media platform X, Zhao said he was deeply grateful for today’s pardon and to President Trump for upholding America’s commitment to fairness, innovation and justice.
He added that he will do everything possible to help make America the “Capital of Crypto”.
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