In brief
- Following his presidential pardon, Binance founder Changpeng ‘CZ’ Zhao has addressed whether a refund would be sought for the $4.3 billion fine paid by the exchange as part of its 2023 settlement with U.S. authorities.
- CZ, who no longer has an executive role at Binance, said any potential refund was a “delicate question,” adding that “I think” no refund has formally been requested.
- Any refunded money would be invested in America “to show our appreciation,” CZ said.
Binance founder Changpeng “CZ” Zhao tackled a “delicate question” Sunday about whether the firm might seek a refund of the $4.3 billion fine paid as part of Binance’s 2023 settlement with U.S. authorities, following his recent presidential pardon.
Zhao stated that the matter was a “delicate question,” in response to a tweet from author and blockchain expert Anndy Lian, noting that “I think” any such refund hasn’t been asked for.
“I appreciate the pardon already,” he said, adding that, “There is a balance in asking for more vs ‘what is fair’ vs appreciate what you got already.”
The former Binance CEO said that, “IF we get any refund, we will be investing that in America anyway, to show our appreciation.”
The conversation also raises an obvious complication about Zhao’s use of the word “we.” CZ stepped down from Binance’s executive ranks under the terms of its settlement, so while he’s responding to a question about “your” $4.3 billion, that fine was paid by the exchange—and he would be unable to speak on its behalf.
Under the terms of the plea agreement reached as part of the settlement, Binance agreed to forfeit $2.5 billion and to pay a criminal fine of $1.8 billion, while Zhao personally paid a fine of $50 million.
Decrypt has reached out to Binance for clarification and will update this article should they respond.
CZ’s presidential pardon
President Donald Trump pardoned Zhao last month, with the clemency ending the legal consequences from his guilty plea to violating U.S. anti-money laundering laws.
Zhao pleaded guilty in November 2023 to charges of failing to maintain an effective anti-money laundering program at Binance, allowing funds linked to terrorism, hacking, and other crimes to flow through the exchange.
The Binance founder was sentenced to four months in prison last May and served his time at a minimum security facility in Lompoc, California.
In May, in an exclusive interview with Decrypt’s sister company Rug Radio, Zhao dismissed reports that he had offered Binance.US equity in exchange for clemency.
Trump defended his decision in a “60 Minutes” interview published early this month, describing Zhao as a “respected” entrepreneur who had been the “victim of weaponization by government,” noting he had heard “it was a Biden witch hunt.”
Democrats immediately condemned the pardon, with Rep. Maxine Waters (D-CA) castigating it as “an appalling but unsurprising reflection of his presidency” and insisting “the pardon was the payoff.”
Senators Elizabeth Warren (D-MA) and Adam Schiff (D-CA) introduced a resolution to rebuke the pardon, and Rep. Ro Khanna (D-CA) described it as “blatant corruption,” noting he plans to pursue legislation barring lawmakers from holding crypto.
Binance’s closeness to the Trump family’s crypto empire had raised eyebrows well before the pardon. In early March, the exchange handled a $2 billion investment from Abu Dhabi’s MGX that was settled in USD1, the stablecoin minted by the Trumps’ World Liberty Financial project.
In June, U.S. Senators Elizabeth Warren (D-MA) and Jeff Merkley (D-OR) wrote to the CEOs of MGX and Binance requesting that the firms preserve records relating to the USD1 investment, describing it as “effectively cutting President Trump into a multi-billion-dollar international deal.”
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