Changpeng "CZ" Zhao, founder of Binance, recently confirmed he has received a presidential pardon from Donald Trump, a development that has sent ripples through the cryptocurrency community. This announcement follows a period of quiet lobbying by Zhao's legal team and is being interpreted by many as a significant shift in the U.S. government's stance toward the crypto industry.
A Pivotal Pardon and Industry Optimism
Zhao expressed profound gratitude for the pardon, committing to help establish America as a global leader in crypto and advance Web3 technologies. This sentiment was echoed by Cardano founder Charles Hoskinson, who hailed the pardon as a correction of a "grave injustice" and a step back from what he described as the previous administration's "weaponization of the justice department" against the industry. The news instantly boosted Binance's native token, BNB, demonstrating the market's positive reaction to Zhao's exoneration. This outcome concludes a chapter that saw Zhao resign from Binance and serve a four-month sentence for a money-laundering charge, with him now looking towards new ventures in blockchain research and AI rather than returning to the exchange.
Insider Trading Allegations and Market Scrutiny
However, the pardon's announcement has also ignited controversy, particularly concerning well-timed trades made by crypto trader Garrett Jin. Jin reportedly wagered on Polymarket that Trump would pardon Zhao this year, turning a modest stake into a significant gain. This incident follows previous instances where Jin accurately predicted major market moves, such as opening large short positions on Bitcoin and Ethereum just before Trump announced tariffs on Chinese imports, yielding massive profits. These repeated, uncannily accurate predictions, preceding both a presidential tariff post and now a reported pardon, have fueled long-standing suspicions of insider access to high-level political decisions. While Jin has denied any connection to the Trump family, these coincidences underscore the growing reality that every policy move from Washington can have immediate and substantial market consequences in the fast-paced crypto world.
