jakiro
Shaw, Bitcoin Vision
1. Trump announces pardon for Binance founderCZ
On October 23, local time in the United States, White House officials stated that,US President Trump has signed an executive order pardoning convicted Binance founder Changpeng Zhao (CZ).Press secretary Carolyn Leavitt said in a statement that Trump “exercised his constitutional authority to pardon Changpeng Zhao, who was indicted in the Biden administration’s cryptocurrency crackdown.”The pardon has been reviewed by White House counsel.Levitt said: “These moves by the Biden administration have severely damaged the United States’ reputation as a global leader in technology and innovation.The Biden administration’s war on cryptocurrencies is over.“
Changpeng Zhao previously resigned as CEO after Binance reached a $4.3 billion settlement with the U.S. government to end years of investigation into it.Zhao Changpeng’s pardon became the latest case in Trump’s series of pardons for white-collar crimes.
2.CZReview of the prosecution incident
On November 21, 2023, CZ reached a plea agreement with the U.S. Department of Justice, admitting that it failed to establish an effective anti-money laundering program at Binance and violated the U.S. Bank Secrecy Act.U.S. prosecutors have accused Binance of allowing transactions that circumvented sanctions and lacking compliance controls.
The U.S. Department of Justice reached the following settlement agreement with CZ: 1. CZ personally resigned as CEO of Binance and paid a fine of US$50 million; 2. Binance pleaded guilty and paid a fine of more than US$4 billion, becoming one of the largest corporate settlements in US history; 3. Binance must undergo independent compliance supervision for three years; 4. CZ was banned from “managing or operating” Binance for life and was unable to hold any executive role at Binance US. The original CEO position was held by Richard TengTake over.After Trump pardoned CZ, it meant that he could return to Binance’s management and take over Binance’s core business.
On April 30, 2024, CZ was sentenced to four months in prison in the U.S. Federal Court in Seattle.It is reported that CZ is the only person in U.S. history to be sentenced to prison on a single Bank Secrecy Act charge.
3.Why Trump pardonsCZ
In March this year, the Wall Street Journal published a report claiming that representatives of the Trump family had been negotiating with Binance to acquire a stake in Binance US, and that CZ was seeking a presidential pardon.The report quoted multiple anonymous people familiar with the matter as saying that negotiations had begun in 2024 and that Trump’s Middle East peace envoy and close friend of the president, Steve Witkoff, participated in the negotiations.
CZ later denied it in a post on social media.He said: “The Wall Street Journal article got the facts wrong. The fact is: I did not discuss the Binance US transaction with… anyone.” But he also said: “No felon would mind being pardoned, especially as the only person in U.S. history to be imprisoned for a single Bank Secrecy Act charge.” In May of this year, CZ confirmed on a podcast that he had officially submitted a pardon application to the Trump administration.
Prediction markets have already begun betting on whether CZ will receive amnesty.Coffeezilla posted on social media that the Hyperliquid 100% winning rate whale, which had shorted before Trump’s tweet and made a profit of about 190 million US dollars, had its associated Polymarket account “bigwinner01” that had previously bet that CZ would receive a presidential pardon.Coffeezilla pointed out that the time point of this operation was very close to related events and was suspected to involve insider information trading.
Trump personally spoke out about his decision to pardon.He said: “Binance founder CZ was pardoned because he was not guilty and was a victim of persecution by the Biden administration.”I did pardon a lot of people, and he (CZ) was recommended by a lot of people,” Trump told reporters Thursday afternoon.Are you talking about the person in the cryptocurrency field?Many believed he was innocent of any crime.”
CNN reporter Collins asked Trump about the pardon. Trump first called the question “fake news” several times to show disparagement, and then stated that he had no personal relationship with CZ.”I don’t know him and I don’t believe I’ve ever met him,” Trump said, “but I was told that he had a lot of support and they said what he did was not even a crime… so at the request of a lot of very good people, I pardoned him.”
4.All parties oppose pardonCZreaction
CZ himselfHe immediately expressed his gratitude to Trump for the pardon on social media: “Thank you very much for today’s pardon, and thank you to President Trump for upholding America’s commitment to fairness, innovation, and justice.We will do whatever it takes to help America become the cryptocurrency capital, and promote the development of Web3 globally.keep going.”
Binance co-founder He YiResponding to CZ’s pardon in a social media post, she said: “CZ was pardoned today. This is really exciting news. Thank you to Trump for his leadership and commitment to making the United States the cryptocurrency capital of the world. CZ’s vision will not only make Binance the largest cryptocurrency exchange in the world, but will also promote the broader cryptocurrency movement. If your heart is full of light, the light will shine on you.”
But there are also different voices regarding CZ’s pardon.According to CBNC reports, senior member of the U.S. Senate Banking, Housing and Urban Affairs Committee,Democratic Sen. Elizabeth Warren sharply criticized the pardon, calling it an example of “corruption.”.”First, Changpeng Zhao (CZ) pleaded guilty to criminal charges of money laundering,” Warren said.”He then promoted one of Donald Trump’s cryptocurrency investments and lobbied for his pardon,” she said.”Today, Donald Trump did his job and pardoned him. Congress will be held accountable if it does not stop this type of corruption in upcoming market structure legislation.”
then-Attorney General Merrick GarlandCZ harshly criticized Binance when he pleaded guilty.“Binance became the world’s largest cryptocurrency exchange in part because of the crimes it committed—and now it is paying one of the largest corporate fines in U.S. history,” Garland said at the time.Then-Treasury Secretary Janet YellenIt also said at the time: “Binance turned a blind eye to its legal obligations in the pursuit of profits. Its willful negligence allowed funds to flow through its platform to terrorists, cybercriminals, and child abusers.”
White House press secretary Levitt noted in a statement Thursday that prosecutors had sought a three-year prison sentence.”The Biden administration is seeking to sentence Mr. Zhao to three years in prison, a sentence that goes well beyond the sentencing guidelines and even the judge said he had never heard of such a sentence in his 30-year career,” she said.
