Donald Trump has pardoned the founder of the world’s biggest cryptocurrency exchange – amid allegations of a conflict of interest.
Changpeng Zhao spent almost four months behind bars last year after admitting that Binance had failed to maintain an effective anti-money laundering programme.
Prosecutors in the case had alleged that inadequate checks had meant criminals could move illicit funds using crypto – including child sex offenders, drug traffickers, terrorists and sanctioned countries.
Mr Trump’s decision to offer clemency has attracted criticism from some ethics experts, given the president’s business empire includes several crypto ventures.
White House Press Secretary Karoline Leavitt has rejected claims of a conflict of interest, and argued that Joe Biden’s administration had prosecuted Zhao as part of a “war on cryptocurrency”.
She told reporters: “The president and the White House have a very thorough examination of every pardon request that comes to the president’s desk.
“I spoke with our great White House counsel about the pardon after it happened. This was an overly prosecuted case by the Biden administration.”
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But Democratic Senator Elizabeth Warren – a vocal sceptic of the crypto space – has criticised the pardon.
“First, Changpeng Zhao pleaded guilty to a criminal money laundering charge. Then he boosted one of Donald Trump’s crypto ventures and lobbied for a pardon. Today, Donald Trump did his part and pardoned him,” she wrote on X.
Binance has refused to respond to her claims.
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Mr Trump’s family is involved in a crypto venture called World Liberty Financial, which has launched a digital asset called USD1 – a stablecoin whose value is pegged to the dollar.
Earlier this year, a Middle Eastern investment fund announced it was making a $2bn investment into Binance using USD1, creating a direct connection between the two men’s businesses.
Mr Trump’s most recent financial disclosure report reveals he made more than $57m (£42.7m) in 2024 from World Liberty Financial.
In a post on X, Zhao said that he was “deeply grateful for today’s pardon and to President Trump for upholding America’s commitment to fairness, innovation, and justice”.
He added: “Will do everything we can to help make America the Capital of Crypto.”
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Speaking to reporters, Mr Trump argued that Zhao had been recommended for a pardon repeatedly – and “a lot of people say he wasn’t guilty of anything”.
The president added that he didn’t believe he had ever met the entrepreneur personally.
