CZ Discusses Future Plans for Binance Fund Following Trump Pardon

Changpeng ‘CZ’ Zhao, the founder of Binance, recently addressed what he would do with the $4.3 billion from Binance’s federal settlement if it were refunded, thanks to a pardon from former President Donald Trump. His comments come amidst mixed reactions to the pardon and the company's legal history.

Key Takeaways

CZ Zhao discussed potential plans for the $4.3 billion from Binance’s settlement after his pardon by Trump.
He expressed appreciation for the pardon and emphasized the importance of fairness.
Binance's federal issues include fines for violations of money laundering laws.
Representative Maxine Waters criticized the pardon, calling it an unsettling endorsement of crypto crime.

Plans for $4.3 Billion Settlement Money

In a recent post on X, Changpeng 'CZ' Zhao addressed a user's question regarding the potential return of the $4.3 billion from Binance’s federal settlement. He described this inquiry as a "delicate question."

Zhao expressed his gratitude for the pardon he received, stating, "There is a balance in asking for more vs 'what is fair' vs appreciating what you got already." He indicated that if Binance were to receive the $4.3 billion back, the funds would be invested in the United States as a sign of appreciation.

“I haven’t asked yet, I think,” he added, highlighting his cautious approach towards the matter.

Political Reactions to CZ’s Pardon

Zhao's comments on the fund came nearly a month after he was pardoned by Trump, who intervened after Zhao faced accusations of failing to implement anti-money laundering measures at Binance in 2023.

Binance Holdings Limited admitted guilt to several charges, including violating the Bank Secrecy Act and failing to register as a money transmitting business, alongside the International Emergency Economic Powers Act (IEEPA). As part of the settlement, Binance agreed to pay over $4 billion as forfeiture, while Zhao himself was fined $50 million.

Following his pardon, Zhao publicly expressed gratitude. In an October 23 post on X, he stated, “Deeply grateful for today’s pardon and to President Trump for upholding America’s commitment to fairness, innovation, and justice.” He reiterated his commitment to making America the "Capital of Crypto" and advancing web3 technology globally.

However, this pardon sparked outrage from various political figures, particularly Congresswoman Maxine Waters (D-CA). She criticized the decision, characterizing it as an attempt to legitimize Zhao’s previous criminal activities. Waters stated that the pardon reflected Trump’s presidency as one marked by "corruption, self-interest, and loyalty to criminals over working-class American families," highlighting the serious implications of Zhao's past offenses involving money laundering and other illegal transactions.

As of now, it remains uncertain whether Binance will indeed reclaim the $4.3 billion.