What Does Zhao Allege About Industry Opposition?
In his newly published memoir, Binance founder and former CEO Changpeng “CZ” Zhao claims that U.S. crypto exchanges spent millions of dollars lobbying to block his presidential pardon. According to Zhao, these efforts were driven by concerns that a pardon would allow Binance to re-enter the U.S. market and compete more directly with domestic platforms.
“A few friends told me that those smear articles were funded by U.S. crypto exchanges fearing that a pardon would allow Binance to re-enter the U.S. market,” Zhao wrote. “They paid millions in lobbying fees to block the pardon, in fear of business competition.”
Zhao also references what he describes as “false news” coverage and “smear articles” from major media outlets, including The Wall Street Journal and Bloomberg, suggesting these narratives were influenced by competing firms.
How Does This Fit Into Zhao’s Legal and Regulatory History?
President Donald Trump pardoned Zhao last October, following a legal case that culminated in a guilty plea in 2023. Zhao admitted to failing to implement adequate anti-money-laundering controls at Binance and stepped down as CEO as part of the resolution.
He has said that the requirement to serve prison time came as a surprise, noting that similar enforcement cases in the past often resulted in deferred prosecution agreements or home confinement rather than incarceration.
Separate reporting indicates that Binance itself engaged in lobbying efforts tied to the pardon process. According to Politico, the firm spent hundreds of thousands of dollars, including a $450,000 payment to a lobbying group with ties to Donald Trump Jr.
Investor Takeaway
What Are the Implications for Binance’s US Strategy?
The memoir’s allegations come as Binance and its U.S. affiliate continue efforts to rebuild their presence in the American market. Zhao writes that opposition to his pardon conflicted with broader ambitions to position the United States as a leading hub for digital assets.
Recent operational moves suggest renewed focus on the region. Binance.US has appointed former Currency.com CEO Stephen Gregory as chief executive, signaling an intent to regain market share where Coinbase remains dominant.
The company has also restored fiat deposit and withdrawal services for U.S. customers after a period of disruption, indicating progress in stabilizing its domestic operations.
Investor Takeaway
How Are Broader Industry Figures Responding?
The memoir includes testimonials from prominent financial figures, including Bridgewater Associates founder Ray Dalio, who described Zhao as “a great admirer of CZ for his bold contributions to making alternative monies accessible to almost everyone in the world.”
The inclusion of such endorsements highlights the divide in perception around Zhao’s legacy, balancing regulatory violations against his role in expanding global access to digital assets.
As the crypto sector continues to evolve under increasing regulatory scrutiny, Zhao’s account adds a new dimension to the intersection of competition, policy, and market structure in the U.S. digital asset landscape.
