Trump Pardons Binance Founder CZ, Stirring Controversy and Market Movement
By: Eliza Bennet
The recent pardon granted to Changpeng Zhao, founder of Binance, by U.S. President Donald Trump has sent ripples through the crypto community, eliciting both praise and condemnation. Announced in a significant move, this pardon comes after nearly a year of lobbying efforts by Zhao's legal team. The Binance founder had earlier pled guilty to a charge related to money laundering and served a sentence, but with his name now cleared, Zhao has expressed his commitment to furthering the crypto industry in America, aiming to transform the country into a pivotal hub for cryptocurrency and Web3 innovation.
Zhao’s pardon was highlighted by Trump's statement at a press conference acknowledging that “a lot of people” vouched for CZ’s innocence, suggesting the founder wasn't guilty of any crime. This decision celebrated by some quarters of the industry, including Cardano’s Charles Hoskinson, highlights a narrative of correcting perceived injustices against crypto entrepreneurs under previous U.S. administrations. However, Trump's move did not come without criticism. Figures such as Rep. Maxine Waters have blasted the decision, pointing to it as a catalyst for further examination into Trump's connections with the crypto world.
The pardon has also triggered a surge in Binance Coin’s (BNB) value, aligning with trader expectations of an upward trajectory in the digital asset's price. BNB exhibited a notable rise of more than 5% following the news, enough to encourage speculation about a potential altcoin season. The effect this pardon has on market dynamics underscores the fast-paced, sensitive nature of the crypto market to geopolitical developments and regulatory changes.
Meanwhile, traders in the crypto-prediction markets have noted uncanny patterns coinciding with this pardon, reminiscent of earlier major trades involving tariffs and market announcements from the Trump administration. These incidents have led to allegations and speculations about insider trading, even though individuals like crypto trader Garrett Jin have denied any ties with the administration. Such developments serve as a testament to the intertwined nature of political moves and their immediate impact on the crypto markets.
