Binance founder Changpeng Zhao is taking a diplomatic approach to his recent presidential pardon, making it clear that the crypto exchange isn't looking for a refund on the billions it paid to settle federal charges.
"Ah, delicate question," Zhao, the former Binance CEO, wrote Monday on X in response to a query from blockchain adviser Anndy Lian. "I appreciate the pardon already. There is a balance in asking for more vs 'what is fair' vs appreciate what you got already."
Then came the pledge: "IF we get any refund, we will be investing that in America anyway, to show our appreciation."
Zhao stressed that no such refund request has been made. Which makes sense, given the political minefield surrounding his case.
The Original Settlement
Back in November 2023, Zhao and Binance pleaded guilty to failing to maintain an effective anti-money laundering program, violating the Bank Secrecy Act. Federal prosecutors alleged these failures allowed money from child abusers, cybercriminals, and terrorists to flow through the platform.
The financial penalties were staggering. Binance faced a $4.3 billion fine, while Zhao personally paid $50 million and agreed to step down from running the company. He also served four months in prison from May to September 2024.
The Trump Pardon
President Donald Trump pardoned Zhao last month, calling him "a victim of weaponization by government." While pardons can forgive fines that haven't been paid yet, legal experts say they don't typically entitle someone to get back penalties already paid.
That legal reality aside, any attempt to reclaim the $4.3 billion would likely trigger intense political blowback. Democrats have already come out swinging against the pardon itself.
Rep. Maxine Waters (D-CA) said Trump's decision reflected "corruption, self-interest, and loyalty to criminals over working-class American families." Sens. Elizabeth Warren (D-MA) and Adam Schiff (D-CA) went further, introducing a resolution condemning the pardon.
"President Trump's pardon of Binance founder Changpeng Zhao is just the latest example of the president's use of the pardon power as a means of rewarding wealthy donors and allies, and enriching himself," Schiff said.
The Trump Connection
The Democratic criticism isn't happening in a vacuum. Binance has developed significant ties to the Trump family's crypto ventures, particularly the decentralized finance project World Liberty Financial.
In March, Binance received a $2 billion investment from Abu Dhabi-owned investment company MGX in World Liberty Financial's stablecoin USD1. Beyond just investing, the exchange also helped write the code for that stablecoin, according to a report from The Wall Street Journal last month.
Trump and the White House have denied that Binance's involvement with these projects influenced Zhao's pardon. But the timing and the optics have given critics plenty of ammunition.
For now, Zhao seems content to let sleeping dogs lie. He's got his pardon, he's avoided prison time beyond what he already served, and he's staying on the right side of political sensitivities by pledging any hypothetical refund would go back into American investments. In the high-stakes world of crypto regulation and presidential pardons, that's probably the smartest play available.