CZ personally pleaded guilty to one count of failing to maintain an effective AML program, admitting that he did not implement sufficient safeguards to prevent Binance from being used for unlawful purposes. The plea deal was part of a broader settlement in which Binance agreed to pay over $4.3 billion in penalties, one of the largest corporate fines in US history.
As part of the agreement, CZ also stepped down as Binance CEO and was sentenced to four months in federal prison in April 2024. Following his conviction, Zhao temporarily relinquished direct control of Binance but continues to retain his ownership stake. A potential presidential pardon could effectively erase CZ’s conviction and restore his legal standing. However, likely, the former Binance boss remains away from the formal leadership of the exchange due to Binance’s agreement with the DOJ under the oversight of a multi-year independent compliance monitor.
Amid the positive news for Zhao, Gasparino has also noted that the presidential pardon may take some time as the US government is facing critical issues, including managing the conflict in the Gaza Strip and Ukraine, while also teasing another tariff battle with China.
