Changpeng Zhao, Binance founder, pardoned by former President Trump, marking a controversial turn in the cryptocurrency industry (Photo: Pinterest)
Donald Trump, the President of the United States, pardoned Changpeng Zhao of Binance, who had previously accepted blame for deficiencies in controlling money laundering via his cryptocurrency exchange. Zhao had been imprisoned following a guilty plea after allegations of the use of his platform for illicit activities of child exploitation, drug trafficking and terrorism financing were made against him.
Zhao who at one time led Binance, the largest cryptocurrency exchange in the world, entered a guilty plea with respect to anti-money laundering (AML) programs not being practiced vigorously by him. The company eventually entered into a $4.3 billion settlement with the U.S. authorities after they were investigated for various misdemeanors after this settlement, Zhao's resignation triggered a big shake up in the management of the crypto industry.
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According to White House press secretary Karoline Leavitt, Zhao's prosecution was the result of the Biden administration's antipathy toward the cryptocurrency industry. The statement contended that there were no charges of fraud or direct victims in Zhao's case, deeming the government's operations excessively punitive.
During the court proceedings, Zhao expressed regret about the oversight of his actions and apologized for the shortcomings in compliance.
The pardon is Zhao's connection with the Trump family crypto venture, World Liberty Financial. The Trump family together with Eric and Donald Trump Jr., established the venture last year, which soon generated massive profits. World Liberty Financial's USD1 stablecoin, pegged 1:1 to the U.S. dollar is implicated in a $2 billion deal in the UAE to purchase a stake in Binance. This implies that Zhao's pardon has many political and financial ramifications.
The pardon to Zhao reflects the recent trend of Trump's clemency to executives involved in financial misconduct. Other recipients of earlier pardons include the founders of BitMEX, who were convicted of similar AML violations and other high-ranking business personalities. These actions invoke an ongoing debate of the implications on entrepreneurial accountability dictated by alliances within the financial and tech industries.
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Disclaimer: This article is for informational purposes only and does not constitute legal or financial advice. Verify facts before making decisions.
