Trump denies knowing Changpeng Zhao despite having pardoned him
During a recent interview, US President Donald Trump claimed he was unfamiliar with Changpeng Zhao, the billionaire founder of Binance, despite having granted him a presidential pardon just weeks earlier. The statement has raised questions about the vetting process behind high-profile pardons and added fuel to ongoing scrutiny surrounding Trump’s ties to the crypto industry.
Zhao’s legal troubles in the US
Changpeng Zhao is a Chinese Canadian tech entrepreneur and the founder of Binance, once the world’s largest cryptocurrency exchange. After its 2017 launch, Binance swiftly rose to prominence in the cryptocurrency market. Low trading fees, a large selection of digital assets, and an easy-to-use platform were its main draws. But its rapid growth and loose oversight also drew scrutiny from regulators worldwide.
In 2023, US federal prosecutors charged Zhao and Binance with violating anti-money laundering laws. Authorities alleged the platform failed to monitor transactions linked to terrorist organisations. Zhao admitted guilt, paid a $50 million fine, and served a four-month prison sentence.
Trump’s pardon sparks debate
Binance was charged by federal prosecutors of not adhering to US financial compliance norms, namely those pertaining to anti-money laundering regulations. Allegedly, the platform failed to sufficiently check transactions or users, allowing possibly illegal funds to pass via its system. Changpeng Zhao, the company’s founder, accepted responsibility, paid a $50 million fine, and served a four-month prison sentence. Some in the crypto community criticised the case as excessive government intervention.
In October, President Donald Trump issued a full pardon for Zhao, shortly after his release from prison. The decision drew widespread attention, with critics questioning the timing and rationale. The White House defended the move, framing Zhao’s prosecution as part of what it called the Biden administration’s crackdown on cryptocurrency, a claim that has since gained traction among Trump’s political base.
Trump distances himself from Binance founder
During his interview with CBS’s 60 Minutes, Donald Trump dismissed any personal connection to Changpeng Zhao, the Binance founder he recently pardoned. “I don’t know who he is,” Trump said when asked about the decision. He added that he was informed Zhao had been unfairly targeted, describing the case as part of what he called a political “witch hunt” by the Biden administration, a phrase Trump frequently uses to criticise his opponents.
Trump’s denial raises questions
Trump may be trying to distance himself from possible conflicts of interest by claiming that he doesn’t know Changpeng Zhao. According to reports, Binance has done business with World Liberty Financial, a cryptocurrency company connected to the Trump family. Such linkages may pose ethical questions if they are verified. Trump avoids being directly linked to any repercussions by denying any acquaintance with Zhao.
According to reports, Binance has done business with World Liberty Financial, a firm connected to the Trump family that creates financial products based on blockchain technology. Because of its timing and Zhao’s pardon, a new $2 billion investment involving a stablecoin associated with the company has garnered notice. The overlap between business interests and political decisions has raised questions about potential conflicts of interest.
Autopen controversy adds to pardon debate
President Biden was previously criticised by Republicans for supposedly utilising it to issue formal pardons. Donald Trump’s use of an autopen to approve Changpeng Zhao’s pardon is now being questioned. If verified, it might exacerbate political tensions and make the pardon’s legal status more complex.
Trump and his allies have continued to question President Biden’s cognitive health, often referring to an “autopen presidency” to suggest a lack of direct involvement in decision-making. Trump contrasts this with what he calls his own “hands-on leadership,” even as he denies knowing Zhao, the man he pardoned.
Trump’s crypto agenda
Trump’s pardon of Zhao aligns with his broader push to position the US as a global leader in cryptocurrency. He has pledged support for blockchain businesses and stablecoin development, framing digital finance as a key part of his economic vision. Zhao, in a public statement, expressed support for that goal.
