A Wall Street Journal report published today alleges that Binance founder Changpeng Zhao (CZ) is pursuing a presidential pardon from Donald Trump, despite having already completed a four-month prison sentence for a Bank Secrecy Act (BSA) violation. Citing unnamed sources, the report also claims Binance has expressed interest in securing investment from Trump-linked entities, such as World Liberty Financial, and relocating significant operations to the U.S.
Presidential Pardon and Legal Context
The WSJ article highlights the U.S. president’s broad constitutional authority to issue preemptive pardons, as affirmed by the Supreme Court in Ex parte Garland (1867). This power extends to crimes not yet prosecuted, raising questions about the motivations behind CZ’s alleged request. The Binance founder, who pleaded guilty to a single BSA charge in 2023, has not publicly confirmed the pardon effort but later challenged the report on social media.
Binance’s Proposed U.S. Expansion
According to the report, Binance has discussed shifting substantial operations to the U.S., aligning with Trump’s longstanding advocacy for “onshoring” foreign business activity. The U.S. government already holds roughly $33 million in Binance Chain (BNB) tokens, recently designated as part of a “U.S. Digital Asset Stockpile” under a Trump executive order.
Recent Developments and Denials
The claims emerge days after Binance announced a $2 billion equity investment from Abu Dhabi’s sovereign wealth fund, MGX—touted by CZ as the largest crypto-denominated deal in history. However, within hours of the WSJ article’s publication, Zhao denied negotiating a U.S. expansion, posting on X: “I have had no discussions of a Binance US deal with … well, anyone.” He added, “No felon would mind a pardon, especially being the only one in U.S. history who was ever sentenced to prison for a single BSA charge.”
Neither Binance executives Yi He nor Richard Teng have commented publicly. Trump’s campaign has not addressed the alleged discussions.
Broader Implications
The report underscores ongoing tensions between crypto giants and U.S. regulators, as well as the political ramifications of Trump’s pro-business agenda. With Trump positioning himself as a crypto-friendly candidate ahead of the 2024 election, Binance’s rumored overtures could signal strategic maneuvering in a shifting regulatory landscape.