• CZ’s case was a regulatory issue, not a crime with victims, involving Binance’s failure to implement anti-money laundering programs.
• CZ is the only executive prosecuted and jailed for similar AML program failures without fraud or victims, raising questions about unequal treatment.
• Critics allege Binance’s business ties with Trump-linked ventures influenced the pardon, but CZ’s lawyer denies these claims, citing blockchain transparency and lack of evidence

The Trump pardon of Binance founder Changpeng “CZ” Zhao was not a simple or direct action. Teresa Goody Guillén, CZ’s lawyer, explained that the application went through several levels of review, including the pardon attorney of the Justice Department, a dedicated pardon office, and the White House Counsel’s Office. The thorough review process was in place to ensure that the pardon was granted after long and careful consideration.

Regulatory Matter

According to Guillén, CZ’s case was one of regulation, rather than crime with victims. The U.S. Department of Justice charged Binance for its failure to implement and maintain anti-money laundering (AML) and compliance programs, with no money laundering activity being reported. This point is indispensable to understanding the pardon context.

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Unprecedented Treatment

His treatment is considered as an example without precedent, pointing out that he is the only one of the executives to have been prosecuted and jailed for similar AML program failures where no fraud or victims were involved. Guillén wondered why the CEOs of major financial institutions who had committed similar or worse violations were not indicted, therefore stressing the difference in the treatment of these two parties.

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Pay-to-Play Allegations

It is claimed by the critics that the business relationship of Binance with Trump-linked ventures and the World Liberty Financial’s stablecoin, USD1, may have been the reasons for pardoning. Nevertheless, Guillén rejected these allegations as “false statements, misstatements, and assumptions” and pointed out that USD1 is available on several chains and that other exchanges also hold it.

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Blockchain Transparency

If the payments for illegal crypto to a political person were happening, Guillén said, then thanks to blockchain transparency everyone would know. She pointed out that just because USD1 is on BNB Chain it does not mean that there is a special relationship between Binance and Trump. She compared it with buying goods with a foreign currency, i.e. without implying that there is a political link.

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Future of Binance

CZ will not be the one to restart the Binance operations. Meanwhile, the exchange is not free from limitations and it is subject to government supervision by various US agencies. Despite the absence of any US customers, Binance is still under a Treasury-monitored compliance regime and a restricted environment.

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