Binance co-founder Changpeng "CZ" Zhao claims rival cryptocurrency exchanges actively opposed his pardon bid, fearing a presidential pardon would enable Binance's return to the US market. Zhao, who stepped down as Binance CEO in 2023 after pleading guilty to money laundering violations, served a four-month prison sentence and was released in September 2024.
The pardon request faced resistance from competitors concerned that Binance's re-entry into American markets would reshape the competitive landscape. Zhao did not receive a pardon during the recent clemency wave, though the specific exchanges opposing his petition remain unnamed.
This claim highlights the fractured state of US crypto exchange operations. Binance, once the world's largest exchange by volume, effectively exited the American market under regulatory pressure from the Treasury Department and other federal agencies. Competitors like Coinbase, Kraken, and others have since captured market share in the absence of Binance's dominance.
A Binance return would immediately threaten the market positions these rivals have built. The exchange maintains substantial global trading volumes despite US restrictions, and domestic re-entry would give it enormous competitive advantages given its infrastructure and user base.
Zhao's comments surface tensions within the industry over regulatory enforcement and market access. His release came after serving time for failing to implement adequate anti-money laundering controls at Binance, violations that led to a $4.3 billion settlement between the exchange and US authorities in 2023.
The ex-CEO's pardon push occurred within a broader clemency context, though specific details on which exchanges or executives lobbied against him remain undisclosed. Binance continues operating globally and remains highly profitable, but the US market remains officially closed to the platform pending potential future policy shifts.
Zhao's assertion underscores how US market access has become a zero-sum competition among major exchanges, with regulatory status directly tied to competitive advantage.