- According to reports, Binance’s Changpeng Zhao could be pardoned by Donald Trump as Cardano co-founder, and a crypto-economic builder joins the plea.
- Trump is known on record to have pardoned more individuals than any other US president in modern times.
Binance founder Changpeng Zhao (CZ) was sentenced to four months in prison last year after pleading guilty to charges that he failed to maintain an effective anti-money laundering program. Also, he was made to step down as the CEO of the exchange and pay $200 million in fines. As part of a coordinated agreement with the Federal Government, Binance also agreed to pay $4 billion in fines and other penalties. As we reported, the exchange admitted to violating anti-money laundering rules, unlicensed money transmitting, and engaging in sanctions violations.
Will CZ Benefit From a Presidential Pardon?
According to reports, Cardano and IOHK founder Charles Hoskinson and crypto-economic builder and VC John Lilic have been supporting a plea that urges President-elect Donald Trump to pardon CZ. In his argument, Lilic explained that the leadership of the Binance founder is important for the crypto industry. However, he has been a victim of what is described as “lawfare.”
Delvin into this, we found that a presidential pardon is a legal act that enables the “POTUS” to forgive a person who has committed a federal crime. However, this does not completely clear individuals of crimes; it only removes legal consequences like fines or jail time.
Researching precedents, we discovered that Trump, in his previous term, granted pardons and reduced the sentence of individuals more than most modern presidents. According to PewResearch, over 70 pardons were granted by the end of his first term, with the likes of Steve Bannon and Elliott Broidy becoming beneficiaries. Also, more than 70 individuals had their sentences reduced.
More on the Possible Pardon of CZ
Looking more into the CZ and Trump connections, it was found that the Binance founder’s net worth skyrocketed by $12 billion after the US election. This implies that his net worth surged from $38 billion to $52.7 billion in just 24 hours.
The call for Trump to pardon CZ also comes as the incoming US president presented himself as a “friend” of the “crypto industry” and pledged to commute the sentence of Silk Road marketplace founder Ross Ulbricht. Additionally, he pledged to “kick out” the chairman of the US Securities and Exchange Commission (SEC), Gary Gensler, from office, establish a Bitcoin strategic reserve and make the US the crypto center of the world.
On this, Michael Dowling, professor of finance at the Dublin City University Business School, commented that:
There has been such a parade of undesirables in the crypto and DeFi world that adding Trump to the list couldn’t possibly push the needle on popularity or enthusiasm. Bear in mind these markets, the original crypto markets, got their start by facilitating drug trafficking.
Earlier, crypto advocate Max Keiser disclosed that the founder of the infamous FTX exchange, Sam Bankman-Fried (SBF), would get a presidential pardon. According to him, CZ would rather be incriminated. Meanwhile, crypto pundits have argued over the past few months that CZ has been unfairly targeted by regulators.
