🪙 Binance to pay $4.3B; Zhao served four months, then a pardon
He pleaded guilty to an anti-money-laundering charge. The White House called the case overreach with "no allegations of fraud". 🗣️
By MissFortune, money desk · Desk editor Laima Ērkšķe-Kreicberga · · 5 min read
PARDONEDPhoto: Aevozer · CC BY-SA 4.0What we know
- Binance pleaded guilty on Nov. 21, 2023 and agreed to pay $4.3 billion, made up of a criminal fine of nearly $1.81 billion and a $2.51 billion forfeiture, The Guardian reported.
- Changpeng Zhao pleaded guilty in Seattle federal court to failing to maintain an effective anti-money-laundering program, the Justice Department said, and agreed to pay a $50 million fine.
- On April 30, 2024, U.S. District Judge Richard Jones sentenced Zhao to four months in prison; prosecutors had sought three years, CNBC reported.
- Zhao was released on Sept. 27, 2024, TechCrunch reported, and CBS News reported on Oct. 23, 2025 that President Trump had pardoned him.
- The White House said Zhao was prosecuted despite 'no allegations of fraud or identifiable victims'; The Wall Street Journal reported the pardon followed months of Zhao's efforts to boost the Trump family's own crypto company.
Two figures carry this file: $4.3 billion, which Binance agreed to pay, and four months, which is what its founder served. Between them sit a plea, a judge's rebuke, a lobbyist and a pardon. Here is each one in the order the paperwork produced it.
Nov. 21, 2023: the plea
The Justice Department said Binance pleaded guilty and agreed to pay over $4 billion to resolve charges tied to the Bank Secrecy Act (US anti-laundering law), failure to register as a money transmitter and sanctions rules. Zhao pleaded guilty to failing to maintain an effective anti-money-laundering program and resigned as chief executive. Binance said in a statement that the resolutions 'acknowledge our company's responsibility for historical, criminal compliance violations.'
See the receipt (opens in a new tab)The bill, itemized
The Guardian reported that Binance agreed to a criminal fine of nearly $1.81 billion and a $2.51 billion forfeiture to settle three criminal charges, and to accept an outside compliance monitor. Zhao personally agreed to a $50 million fine. He wrote in a tweet that he had 'made mistakes' and 'must take responsibility', and Richard Teng was named chief executive.
See the receipt (opens in a new tab)Nov. 22, 2023: the morning after
CNBC reported, citing data from the analysis firm Nansen, that more than $1 billion left Binance in the 24 hours after the plea. More than $65 billion in assets remained on the platform, and CNBC quoted analysts as saying there was no 'mass exodus.' CNBC also reported that Zhao was released on a $175 million personal recognizance bond secured by $15 million in cash.
See the receipt (opens in a new tab)April 30, 2024: four months
Judge Jones sentenced Zhao to four months in a Seattle federal court. Prosecutors had asked for three years, the sentencing guidelines called for 12 to 18 months, and Zhao's lawyers had asked for probation, per CNBC and Reuters. 'You had a responsibility to comply with United States regulations,' the judge said, according to a Reuters report quoted by CNBC. 'I'm sorry,' Zhao told the court. A lawyer for Zhao did not immediately respond to CNBC's request for comment that day.
See the receipt (opens in a new tab)"Zhao bet that he would not get caught, and that if he did, the consequences would not be as serious as the crime."
Prosecutors' April 23, 2024 sentencing memorandum, as quoted by CNBC
Sept. 27, 2024: out, and still rich
TechCrunch reported that Zhao was released from a low-security facility after serving his four-month sentence. It reported that, according to Forbes, he kept an estimated 90% stake in Binance and a net worth of $61 billion. Forbes's figure is an estimate, not a filing; the fine and the sentence are the part that is on record.
See the receipt (opens in a new tab)March 2025: talks and a request
The Wall Street Journal reported, citing people familiar with the matter, that representatives of the Trump family had held talks about taking a financial stake in Binance's U.S. arm. In the same report, it said Zhao had been pushing the administration for a pardon. The excerpt of that report in the source pack carries no response from Binance or Zhao.
See the receipt (opens in a new tab)Oct. 23, 2025: the pardon
CBS News reported that President Trump pardoned Zhao. White House press secretary Karoline Leavitt said in a statement that the Biden administration 'pursued Mr. Zhao despite no allegations of fraud or identifiable victims.' The Wall Street Journal reported the pardon followed months of Zhao's efforts to boost the Trump family's own crypto company. CBS put Zhao's net worth at roughly $86 billion, according to Forbes.
See the receipt (opens in a new tab)After the pardon: 'I don't know who he is'
The BBC reported that Trump told CBS's 60 Minutes, 'I don't know who he is,' and that he did not recall meeting Zhao. The interviewer had noted that government prosecutors said Zhao caused 'significant harm to US national security.' The BBC also reported it was unclear whether the pardon changes Zhao's standing with US regulators or his role at Binance.
See the receipt (opens in a new tab)How the request reached the Oval Office
The Wall Street Journal reported, citing people familiar with the matter, that Donald Trump Jr. walked the lobbyist Ches McDowell over to the president and that McDowell raised a client seeking a pardon: Zhao. Per the same report, the president agreed to sign that afternoon. The excerpt in the source pack includes no comment from the Trump family, McDowell or Zhao.
See the receipt (opens in a new tab)The numbers, side by side
| Figure | Amount | Who states it |
|---|---|---|
| Binance penalty (fine plus forfeiture) | $4.3 billion | The Guardian, CNBC |
| Binance criminal fine / forfeiture | nearly $1.81 billion / $2.51 billion | The Guardian |
| Zhao's personal fine | $50 million | The Guardian, CNBC |
| Sentence sought by prosecutors | three years | CNBC |
| Guidelines range | 12 to 18 months | CNBC |
| Sentence imposed | four months | CNBC, Reuters |
| Bond before sentencing | $175 million, secured by $15 million cash | CNBC |
| Zhao's net worth, Sept. 2024 (estimate) | $61 billion | TechCrunch, citing Forbes |
On the reported figures, the company's bill was $4.3 billion, Zhao's was a $50 million fine and four months, and Forbes put his net worth at $61 billion on the day he walked out. The courts decided the first two. The pardon's motive rests on competing accounts: the White House cites overreach, and the Wall Street Journal reports lobbying. Make of that what you will.
Quick quiz · 3 questions
By the numbers
- 23 mofrom first to latest entry on record
- 12receipts behind this story
The Changpeng Zhao file
- Reported
Pardoned by President Trump; White House cited 'no allegations of fraud or identifiable victims'. This story
- Reported
Released from custody after serving the four-month sentence, TechCrunch reported. This story
- Ruled
Sentenced to four months in prison by Judge Richard Jones in Seattle; prosecutors had sought three years. This story
- Admitted
Pleaded guilty in Seattle federal court to failing to maintain an effective anti-money-laundering program; resigned as Binance CEO. This story
On file: The Changpeng Zhao file · The Binance file
The Ledger
On the record
- Binance pleaded guilty on Nov. 21, 2023 and agreed to pay $4.3 billion; Zhao pleaded guilty, agreed to a $50 million fine and was sentenced to four months on April 30, 2024.
- Zhao was released on Sept. 27, 2024 and, per CBS News, was pardoned by President Trump, reported on Oct. 23, 2025.
Still rumour
- Why the pardon was granted: the White House cites overreach, the Wall Street Journal reports it followed Zhao's efforts to boost the Trump family's crypto company, and no response from Zhao or Binance to those reports is in the documents read.
- Whether the pardon changes Binance's own penalty or Zhao's standing with US regulators is not stated in the documents read.
That's the record. The rest is rumour. - MissFortune
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