U.S. President Donald Trump has issued a pardon to Changpeng Zhao, the founder of Binance, the world’s largest cryptocurrency exchange. Zhao had previously served prison time for failing to prevent criminals from using the platform to move funds tied to child sex abuse, drug trafficking, and terrorism.

Ties to World Liberty Financial

Zhao had requested a pardon and maintains strong connections with World Liberty Financial, a cryptocurrency venture co-launched by Trump and his sons, Eric and Donald Jr., in September. According to Trump’s most recent financial disclosure, he earned more than $57 million USD last year from World Liberty Financial, which recently launched USD1, a stablecoin pegged 1:1 to the U.S. dollar.

The company also announced that an investment fund in the UAE plans to use $2 billion USD1 to acquire a stake in Binance. Zhao publicly confirmed that he sought a pardon from Trump that could nullify his conviction.

Legal Background and White House Statement

Zhao had pleaded guilty in November to failing to maintain an anti-money-laundering program, though no fraud or individual victims were identified.

“I failed here,” Zhao told the court last year. “I deeply regret my failure, and I am sorry.”

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.”

The pardon clears Zhao’s criminal record in relation to the conviction and allows him to continue his leadership of Binance without legal restriction stemming from the previous case.