"Zhao, who goes by CZ, pled guilty in November 2023 to failing to maintain an effective anti-money laundering program at Binance. In parallel, Binance admitted to violating US sanctions and settled with financial regulators, which accused the company of failing to report suspicious transactions involving terror groups, child exploitation networks, and cybercriminals, among other violations. In a particularly incriminating exchange detailed in court documents, one Binance employee said to a colleague, "we see the bad, but we close 2 eyes.""
"Less than two years later, the narrative has flipped. On October 23, Trump struck the charges from Zhao's criminal record. The Binance founder was a victim of the "Biden administration's war on crypto," a White House spokesperson declared. The decision to pardon Zhao will reverberate throughout the US crypto exchange market, which Binance could seek to reenter, legal experts claim."
Changpeng Zhao, founder of Binance, served four months in federal prison after pleading guilty to failing to maintain an effective anti-money-laundering program. Binance admitted sanctions violations and settled with regulators, accepting a US compliance monitor, leaving the US market, and paying a $4.3 billion penalty. A court exchange revealed employees ignored suspicious activity. President Trump issued a pardon on October 23, removing Zhao's criminal record and framing him as a victim of a political campaign against crypto. The pardon could enable Binance to reenter the US market and carries potential long-term political and regulatory consequences for the US crypto industry.
Read at WIRED
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