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.”
Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.
Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.
An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.
Changpeng Zhao says any refunded fine would be used for U.S.investments.
Legal experts argue the fine applies to Binance, not CZ personally.
CZ’s legal team has publicly rejected the rumors of a crypto payoff for the pardon.
Binance co-founder Changpeng Zhao has suggested that if the US government ever returns any portion of the $4.3 billion settlement paid by his company, he would reinvest it back into the American economy. The comment comes after the executive saw a presidential pardon in October.
Zhao acknowledged on X that asking for a refund could be excessive, as he already appreciated the pardon. He confirmed that he had not yet made any such request, but if in case he receives any amount, it would be used to benefit America as a token of gratitude.
Will CZ Receive a $4.3B Refund?
The discussion started from a public question posed by blockchain advisor Anndy Lian. Some observers argue that a presidential pardon removes guilt and that the multibillion-dollar penalty no longer stands.
Notably, the $4.3 billion settlement was imposed on Binance as a company for its failure to comply with anti-money laundering and sanctions regulations. A presidential pardon applies to criminal liability, not necessarily to corporate financial settlements.
As a result, many legal analysts are suggesting that the fine still remains legally binding unless challenged and overturned.
Rumors of Crypto Payoff Rejected
Donald Trump’s presidential pardon of CZ has resulted in massive scrutiny. Critics argue that the pardon raises serious questions about conflicts of interest and the fairness of regulatory enforcement.
Many claim that Zhao or Binance secretly paid President Donald Trump in cryptocurrency to obtain clemency. However, Teresa Goody Guillen, who led Zhao’s U.S. defense team, dismissed the allegation during a recent interview with crypto expert Anthony Pompliano.
Guillen noted that any large crypto transfer would be publicly visible on the blockchain. She added that Zhao has never attempted to buy influence before, during, or after sentencing.
Trump also previously dismissed such rumors, claiming he didn’t know CZ personally. He framed the pardon as correcting an unfair campaign by the previous administration against the crypto industry.
The pardon came after CZ pleaded guilty in 2023 to violating the US Bank Secrecy Act for his exchange’s anti-money-laundering lapses. He served four months in prison and paid a $50 million personal fine.
Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.
Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.
An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.
Binance claims no special relationship with Hamas, argues to dismiss lawsuit
A federal judge has not yet issued a ruling on a motion to dismiss a lawsuit, filed by families of victims affected by the 2023 Hamas attack on Israel, against cryptocurrency exchange Binance and its former CEO, Changpeng CZ Zhao.
On Jan. 30 in the US District Court for the Southern District of New York, lawyers representing Binance presented oral arguments in connection with the companys motion to dismiss the families complaint filed in January 2024. According to reporting from Inner City Press, the exchanges legal team argued crypto was not inherently dangerous, pushing back against allegations that Binance facilitated transactions benefiting Hamas.
There was no special relationship between Hamas and Binance, said a lawyer for the exchange.
Kraken restores staking services in US after 2-year hiatus
Crypto exchange Kraken has resumed staking services for US clients for the first time in nearly two years. Customers ability to stake had been paused since 2023, when the exchange reached a multimillion-dollar settlement with the US Securities and Exchange Commission over the services.
Customers in 37 US states will now be able to access staking services for 17 digital assets, including Ether, SOL, and Cardano’s ADA.
Kraken was among the first crypto exchanges to provide staking services to customers, which it began offering in 2019. The exchange agreed to stop providing the services in February 2023 as part of a $30 million settlement with the SEC.
SBFs parents seek pardon from President Trump: Report
The parents of former FTX CEO Sam SBF Bankman-Fried are reportedly exploring the possibility of a presidential pardon for their son, who was sentenced to 25 years in prison last March.
According to a Jan. 30 Bloomberg report citing anonymous sources, Bankman-Frieds parents have already met with lawyers and other figures close to the Trump administration to determine whether clemency was possible.
Once considered to be the golden child of crypto, Bankman-Frieds house of cards fell apart in late 2022 when FTX couldnt fulfill customer withdrawals. The exchange collapsed in a matter of days, revealing a business built on fraud, embezzlement and misuse of customer funds.
Elon Musks dad plans $200M raise with Musk It memecoin
Elon Musks father may be the next influential figure to raise funds through a memecoin amid growing interest in celebrity-backed meme tokens.
Retail investor interest returned to memecoins after President Donald Trump launched the Official Trump memecoin on Jan. 18 and the Official Melania Meme token on Jan. 19 on the Solana network
Joining the ranks, Elon Musks father, Errol Musk, is reportedly looking to launch his own memecoin token project called Musk It.
Musks father hopes to raise as much as $200 million from the memecoin project, which he plans to use to support a for-profit think tank called the Musk Institute, he told Fortune.
MicroStrategy announces pricing of strike preferred stock offering
MicroStrategy announced the pricing of its perpetual strike preferred stock offering at a public listing price of $80 per share and will issue the corporate securities on Feb. 5.
The company forecasts $563.4 million in revenue from the tranche of perpetual strike preferred stock, which features an 8% coupon and a liquidation value of $100.
According to the announcement, the proceeds from the sale will go toward acquiring more Bitcoin and covering operating expenses.
MicroStrategy continues to lean into its 21/21 plan of issuing $21 billion in equity and $21 billion in fixed-income securities to finance Bitcoin acquisitions, and it has become the most prominent BTC-holding firm.
Winners and Losers
At the end of the week, Bitcoin (BTC) is at $102,408, Ether (ETH) at $3,311 and XRP at $3.05. The total market cap is at $3.52 trillion, according to CoinMarketCap.
Among the biggest 100 cryptocurrencies, the top three altcoin gainers of the week are Onyxcoin (XCN) at 63.67%, MANTRA (OM) at 49.60% and Jupiter (JUP) at 24.35%.
The top three altcoin losers of the week are Pudgy Penguins (PENGU) at 36.44%, Fartcoin (FARTCOIN) at 27.96% and Official Melania Meme (MELANIA) at 21.31%. For more info on crypto prices, make sure to read Cointelegraphs market analysis.
Most Memorable Quotations
Bit of a nothing burger FOMC press conference. Not dovish, not hawkish. Walking a very diplomatic line, and I think the market was expecting Powell to be more vocal about Fed independence.
Huf Haus, founder of Pear Protocol and former TradFi trader
I think were moving past what truly felt like an unlawful war on crypto.
Brad Garlinghouse, CEO of Ripple Labs
I’m not so sure Musk It will hit the heights some Trump family memecoins have reached. It feels like Elon’s personal stamp is what really gets people excited about these projects.
Anndy Lian, author and intergovernmental blockchain expert
This could mean that Bitcoin still has room for further upside, but traders should closely monitor the ratio of young coins to long-term holdings for potential warning signs of a top.
CryptoQuant
This is a perfect example of the contrasting behaviors between whales and retail traders and it is often considered a better choice to follow whales rather than retail investors.”
Darkfost, pseudonymous CryptoQuant contributor
Bitcoin’s price is less a standalone reflection of its market fundamentals and more tied to broader macroeconomic shifts, particularly in risk sentiment.
Bitfinex analysts
Prediction of The Week
XRPs 50% rally outperforms crypto market in January Is $4 the next stop?
The XRP token staged an impressive 50% rally throughout January, outperforming the wider cryptocurrency market. Technical chart patterns are now targeting a longer-term breakout above $4 in the future.
XRP rose over 50% during the past month, outperforming Bitcoins 13% rally and Ethers near 4% decline, Cointelegraph Markets Pro data shows.
Read also Features Sweden: The Death of Money? Features 11 critical moments in Ethereums history that made it the No.2 blockchain
XRP token decoupled from the rest of the market due to positive regulatory developments for Ripple Labs, which received approval for its RLUSD stablecoin from the New York Department of Financial Services on Dec. 10.
Another reason behind XRPs price surge is its increased adoption by financial institutions, according to Santiment. The crypto intelligence firm wrote in a Jan. 29 post:
XRP has recently been recognized by more major financial institutions and its integration into various payment systems has bolstered investor confidence.
XRPs price may be setting up for a breakout above $4 before the end of February, according to emerging technical patterns shared by popular crypto analyst Dark Defender.
XRP is pending confirmation on 4-hour and 1-day time frames for the breakout. The short-term target is $4 with Sub-Wave 5, and the Support is $3.07,” Dark Defender said.
FUD of The Week
Tether disappointed with rushed actions on MiCA-driven USDT delisting in Europe
Stablecoin operator Tether addressed European cryptocurrency regulations amid exchanges like Crypto.com preparing to delist its USDt stablecoin in Europe tomorrow.
Tether expressed disappointment over market developments in Europe amid changes triggered by the enforcement of the European Unions Markets in Crypto-Assets (MiCA) framework.
Crypto.com, a global crypto exchange, confirmed on Jan. 29 that it will start delisting Tethers USDt stablecoin and nine other tokens on Jan. 31 to comply with MiCA regulations.
It is disappointing to see the rushed actions brought on by statements which do little to clarify the basis for such moves, a spokesperson for Tether told Cointelegraph.
China convicts BKEX staff for illegal gambling via crypto contracts
A Chinese court ruled that cryptocurrency exchange BKEX engaged in illegal gambling through its contract trading platform and sentenced several employees and agents to prison for their roles in the operation.
The Peoples Court of Pingjiang County, Hunan Province, determined on Jan. 29 that BKEXs contract transactions functioned as a form of online gambling, and those involved were accomplices in the crime of opening a casino.
According to the ruling, BKEX allowed users to place bets using USDt, a stablecoin pegged to the US dollar, and apply high leverage up to 1,000x in some cases to wager on the price movements of Bitcoin, Ether and other cryptocurrencies.
Gemini wont hire MIT grads unless university drops ex-SEC chair Gensler
Crypto exchange Gemini wont be hiring any graduates from the Massachusetts Institute of Technology unless the university drops former US Securities and Exchange Commission Chair Gary Gensler from his teaching role.
Read also Features NFT collapse and monster egos feature in new Murakami exhibition Features Banking The Unbanked? How I Taught A Total Stranger In Kenya About Bitcoin
As long as MIT has any association with Gary Gensler, Gemini will not hire any graduates from this school, Gemini co-founder and CEO Tyler Winklevoss said in a Jan. 30 post on X. He added the crypto exchange also wouldnt hire interns for its summer internship program.
Gemini has sparred with the SEC since January 2023 after the agency sued the firm alongside Genesis, accusing them of selling unregistered securities through the Gemini Earn program. Genesis paid $21 million in fines in March 2024 to settle the claims.
Top Magazine Stories of The Week
Korean exchange users surge 450%, Metaplanet buying 21K Bitcoin: Asia Express
Metaplanet aims to buy 21,000 Bitcoin by 2026, DeepSeek spooks Bitcoin, Korean users surge after Trump victory.
9 curious things about DeepSeek R1: AI Eye
The real story behind DeepSeek … or at least a bunch of interesting stuff we found out about it online.
Pectra hard fork explained Will it get Ethereum back on track?
Confused by all the technical jargon used by devs to explain Ethereums Pectra hard fork? Weve translated the upgrades into English for ordinary people.
Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.
Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.
An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.
