Trump Claims No Knowledge of Binance Founder CZ Despite Pardon

US President Donald Trump has publicly denied any prior knowledge of Changpeng Zhao, the billionaire founder of Binance, despite having granted him a presidential pardon last month. The pardon was issued after Zhao pleaded guilty in March 2023 to charges related to enabling money laundering and subsequently stepped down as Binance’s chief executive.

During a recent exchange, Trump was questioned about the rationale behind pardoning Zhao. He replied, “Okay, are you ready? I don’t know who he is,” and emphasized that he had “no idea who he is” or recollections of ever meeting him. The president noted that he had been informed that Zhao was a victim of a “witch hunt” orchestrated by the administration of former president Joe Biden.

Zhao, commonly referred to as CZ, served four months in prison after entering a plea deal with US prosecutors. Following his release, his companies have engaged in partnerships with firms linked to Trump, notably Dominari Holdings, where Trump’s sons serve on the board of advisers.

Trump reiterated his commitment to fostering innovation within the cryptocurrency sector, stating that the United States must take the lead in this area to avoid falling behind competitors like China. The presidential pardon has lifted restrictions that previously prohibited Zhao from overseeing financial ventures. Nevertheless, it is uncertain if this action will impact his regulatory status or future role at Binance, which remains the world’s largest cryptocurrency exchange.

White House Press Secretary Karoline Leavitt defended the pardon, characterizing Zhao’s prosecution as part of a larger “war on cryptocurrency” initiated by the Biden administration. “This was an overly prosecuted case,” she asserted. “The president wants to correct this overreach and exercised his constitutional authority to do so.”

Trump’s administration has faced criticism for its lenient stance toward cryptocurrency executives. Earlier, the administration halted a fraud case against Justin Sun, a significant investor in the Trump family’s crypto venture, World Liberty Financial. Additionally, Trump has issued pardons to the founders of BitMEX and to Ross Ulbricht, the creator of Silk Road, a notorious dark web marketplace recognized for facilitating illegal drug trade.

The implications of these pardons and the administration’s approach to cryptocurrency regulation continue to unfold, raising questions about the future landscape of the industry in the United States.