WASHINGTON — President Donald Trump has issued a pardon to Changpeng Zhao, the founder of Binance, the world’s largest cryptocurrency exchange. Zhao had previously pleaded guilty to a money laundering charge in 2023 and served time in prison. Zhao, who is often referred to as CZ, was sentenced to four months in prison in May 2024 after admitting to failing to maintain an effective anti-money laundering program. His legal troubles stemmed from allegations that Binance allowed criminals to use its platform for illicit activities, including child sex abuse, drug trafficking, and terrorism. In a statement, White House press secretary Karoline Leavitt said Trump “exercised his constitutional authority” in granting the pardon. She criticized the Biden administration for its prosecution of Zhao, claiming it was part of a broader effort to punish the cryptocurrency industry. Leavitt noted that there were “no allegations of fraud or identifiable victims” in Zhao’s case. Zhao had previously requested a pardon from Trump, expressing regret for his actions. “I failed here,” Zhao told the court last year. “I deeply regret my failure, and I am sorry.” The pardon could potentially allow Binance to resume operations in the United States. Following Zhao’s conviction, he stepped down as CEO of Binance and the company agreed to pay over $4 billion in fines and penalties as part of a settlement with the federal government in 2023. Zhao has strong connections to World Liberty Financial, a cryptocurrency venture launched by Trump and his sons, Eric and Donald Jr. in September. Trump’s recent financial disclosures indicate he earned more than $57 million from World Liberty Financial last year. The venture has introduced USD1, a stablecoin pegged to the U.S. dollar, and is reportedly involved in a $2 billion investment in Binance through a fund in the United Arab Emirates. This story is developing and will be updated as more information becomes available.