President Donald Trump has pardoned Changpeng Zhao, the founder of Binance, who pleaded guilty to anti-money-laundering violations and served prison time. The decision follows Zhao’s public request for a pardon, which he claimed could nullify his conviction. Trump’s pardon was linked to Zhao’s ties to World Liberty Financial, a cryptocurrency venture launched by Trump and his sons, Eric and Donald Jr.
The White House press secretary, Karoline Leavitt, stated that the Biden administration’s prosecution of Zhao was motivated by a desire to punish the cryptocurrency industry. Leavitt emphasized that there were no allegations of fraud or identifiable victims. However, Zhao had pleaded guilty to one count of failing to maintain an anti-money-laundering program in November.
Trump’s most recent financial disclosure report reveals that he made over $57 million last year from World Liberty Financial. This venture has also launched USD1, a stablecoin pegged at a 1-to-1 ratio to the U.S. dollar. Recently, an investment fund in the United Arab Emirates announced plans to use $2 billion worth of USD1 to purchase a stake in Binance, further highlighting the financial implications of this development.