Binance founder Changpeng Zhao (CZ) posted on social media platform X yesterday (March 13) in response to a report by the Wall Street Journal (WSJ), accusing it of "distorting the facts." The report claimed that the Trump family was negotiating with Binance to invest in its U.S. branch, Binance US, and suggested that this move might be related to Zhao seeking a presidential pardon. In response, Zhao explicitly denied having discussed any transactions regarding Binance US with anyone and questioned the potential political motives behind the report. This incident has not only sparked widespread attention in the cryptocurrency community but has also brought Binance's complex relationship with the U.S. regulatory environment back into the spotlight.
Background: Zhao's Clash with the Wall Street Journal
According to Zhao's post on X, he stated, "I apologize for disappointing everyone. The Wall Street Journal's article distorts the facts. The truth is: I have never discussed any transactions regarding Binance US with anyone." He further revealed that over 20 people had contacted him, stating that the WSJ and other media had reached out to them, asking if they could confirm that CZ had made some sort of deal to obtain a pardon. Zhao speculated that the media might have contacted hundreds of people to gather information, attempting to "fabricate a story that could be reported."
The WSJ reported on March 13 that representatives of the Trump family were negotiating with Binance to expand their business in the U.S. market through an investment in Binance US. The report also mentioned that Binance hoped to secure a pardon from U.S. President Donald Trump for Zhao to mitigate the legal consequences he faced due to anti-money laundering charges in 2023. Although the report cited "informed sources," it did not provide direct evidence to support the existence of such a transaction or pardon negotiations.
In his response, Zhao not only denied the transaction rumors but also pointed to the motives behind the report. He wrote, "It feels like this article is an attack on the president and cryptocurrency; the remnants of the previous administration's 'crackdown on cryptocurrency' are still at work." This statement suggests that he believes the report may be related to domestic political struggles or regulatory attitudes in the U.S., rather than being purely a business news story.
Zhao's Legal Background and Pardon Controversy
Zhao's response is closely related to his personal experiences. In November 2023, as CEO of Binance, he reached a plea agreement with the U.S. Department of Justice, admitting to failing to establish effective anti-money laundering (AML) procedures, violating the Bank Secrecy Act (BSA). Under the agreement, Zhao resigned as CEO, personally paid a $50 million fine, while Binance was fined $4.3 billion. He was subsequently sentenced to four months in prison in April 2024, becoming the first person in U.S. history to be imprisoned for a single BSA charge. After serving his sentence, he was released on September 27, 2024.
In his post on X, Zhao candidly stated, "As the only person in U.S. history to be imprisoned for a single BSA charge, no felon would mind receiving a pardon." This statement indicates that he is open to the idea of a pardon but has not actively confirmed any negotiations with the Trump family or any related parties. Given previous reports, Zhao's legal troubles could indeed limit his business activities in the U.S., and a pardon could potentially clear obstacles for Binance's return to the U.S. market. However, there are currently no official documents or independent sources confirming the existence of pardon negotiations.
Binance's Complex Relationship with the U.S. Market
As the world's largest cryptocurrency exchange, Binance has long had a tense relationship with U.S. regulators. In 2023, in addition to the Department of Justice's charges, the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) also filed lawsuits against Binance and its U.S. branch, accusing it of illegal operations, misleading investors, and mismanagement of assets. As a result, Binance US's business has significantly shrunk in the U.S., and Zhao's plea agreement further restricts his ability to participate in Binance's management for the next three years.
If the Trump family's investment plan mentioned in the WSJ report is true, it could bring new development opportunities for Binance US. Since launching his 2024 campaign, Trump has publicly supported the cryptocurrency industry multiple times and signed an executive order in early 2025 to establish a Bitcoin strategic reserve, demonstrating a positive attitude toward digital assets. This policy background provides possibilities for collaboration between crypto companies and the Trump administration. However, Zhao's clear denial raises doubts about the credibility of this rumor.
Additionally, Zhao mentioned in his response that the development of Binance in the U.S. and globally has always been his goal. He stated, "I have always been committed to promoting the development of cryptocurrency in the U.S. and other parts of the world." This may hint at his future plans but does not specifically reveal whether it involves restructuring Binance US or new business layouts.
Community Reaction and Industry Impact
Zhao's post quickly sparked heated discussions in the cryptocurrency community. On platform X, many users expressed their support for him, calling him a "pioneer of the crypto industry." One user commented, "CZ should not bear such a heavy burden due to regulatory pressure; he deserves to be treated fairly." Others questioned the WSJ's report, arguing that it lacked substantial evidence and might just be "clickbait."
Industry observers pointed out that this incident reflects the ongoing uncertainty faced by the cryptocurrency industry in the U.S. Although the Trump administration has shown support for cryptocurrencies, the attitude of regulatory agencies remains unclear. If Binance wants to return to the U.S. market, it not only needs to resolve legal obstacles but also must deal with ongoing scrutiny from agencies like the SEC. Zhao's personal reputation and Binance's brand image are also being tested in this process.
Zhao's refutation of the WSJ report is both a defense of his personal reputation and a clarification of Binance's future strategy. Although he denied the rumors of a transaction with the Trump family, his openness to a pardon and the potential opportunities for Binance in the U.S. market still leave room for speculation. For the entire cryptocurrency industry, Zhao's and Binance's experiences may just be a glimpse of the regulatory wave, with more stories yet to unfold.
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