Changpeng "CZ" Zhao, the founder and former CEO of Binance (BNB), has a theory about why he ended up in prison. He thinks the Biden administration made him an example.
"I think so, yes," Zhao said Tuesday when asked in a Fox Business interview whether the previous administration targeted him to set an example in cryptocurrency enforcement. The billionaire, who pleaded guilty to violating the Bank Secrecy Act in 2023, described the Biden administration as having declared a "war on crypto," creating what he called a "hostile" environment for the industry.
Here's the backstory: Zhao admitted to failing to maintain an effective anti-money laundering program at Binance. As part of his settlement, he paid a $50 million fine, stepped down as CEO, and served four months in prison. It was a pretty clear message from regulators about how seriously they take compliance in the crypto world.
But Zhao sees it differently. He believes the enforcement action was personal—and political. "The Biden administration had declared a 'war on crypto,'" he said, arguing that Democrats underestimated how many voters care about cryptocurrency in the last election. According to Zhao, those voters were swayed by President Donald Trump's pro-crypto stance.
What's interesting is that even after the election, Zhao says some Democratic lawmakers are still fighting. He singled out Senator Elizabeth Warren (D-Mass.), saying he finds it "shocking" that she continues to "declare a war on cryptocurrency." MarketDash reached out to Warren and the Democratic Party for comment but has not yet heard back.
Then there's the pardon. Last year, President Trump pardoned Zhao. Trump said he doesn't know Zhao personally and has never met him, but he was told by "a lot of people" that Zhao didn't commit any crime and was "persecuted" by the Biden administration.
Warren wasn't happy about that. She criticized the pardon severely, alleging a potential quid pro quo between Zhao and the Trump family. Her concern centers on Binance's involvement in a $2 billion investment through the World Liberty Financial USD (USD1) stablecoin.
Zhao has rejected those claims, accusing Warren of distorting the facts surrounding his conviction. The whole situation reads like a political drama with billions of dollars at stake—which, in crypto, is pretty much business as usual.
