U.S. President Donald Trump has issued a pardon to Changpeng Zhao, the co-founder of the cryptocurrency exchange Binance, who was previously convicted on money laundering charges. The announcement was made by a White House official on Thursday. This pardon is part of a broader trend of clemency extended to cryptocurrency executives under Trump's administration.

White House press secretary Karoline Leavitt stated that Trump exercised his constitutional authority to pardon Zhao, who was prosecuted by the Biden administration. Leavitt emphasized that Zhao faced prosecution despite there being no allegations of fraud or identifiable victims. Zhao expressed his gratitude on social media, stating he was "deeply grateful for today’s pardon and to President Trump for upholding America’s commitment to fairness, innovation, and justice."

Zhao, a Canadian citizen born in China, founded Binance in 2017 and served as its CEO until stepping down in 2023. He was sentenced to four months in prison last year after pleading guilty to charges related to failing to maintain effective anti-money laundering controls. Binance itself pleaded guilty to similar charges and agreed to pay a $4.3 billion penalty, one of the largest corporate fines in U.S. history.

The pardon could allow Zhao to re-engage with Binance and potentially expand its operations in the U.S. market. Trump has garnered support from the cryptocurrency sector for his 2024 presidential campaign, promising to reverse the policies of the Biden administration, which has been critical of the crypto industry.

Zhao's pardon follows a series of similar actions by Trump, including pardons for the co-founders of the crypto exchange BitMEX and the founder of electric truck company Nikola, who was convicted of fraud. Trump's administration has shown a favorable stance toward the cryptocurrency industry, with connections between the Trump family and crypto ventures becoming increasingly apparent.

Experts note that Zhao's pardon may help alleviate some of the legal restrictions he faced, including limitations on travel to the U.S. and participation in U.S. securities markets. The pardon has already had an impact on Binance's BNB token, which saw a price increase following the announcement.

As the cryptocurrency landscape continues to evolve, Zhao's pardon marks a significant moment in the ongoing relationship between the crypto industry and U.S. political leadership.