BitGo CEO Defends CZ Against Money Laundering Violation Allegations
Mike Belshe, CEO of BitGo, defended Binance founder Changpeng Zhao on X, clarifying that Zhao did not plead guilty to money laundering. Instead, Zhao admitted to violating the Bank Secrecy Act by failing to maintain an effective anti-money laundering (AML) program. Belshe emphasized that Zhao received jail time solely for this violation, which is unprecedented.
Pardon Controversy
- Zhao was recently pardoned by President Donald Trump after serving a four-month prison term for his AML failures.
- Senator Elizabeth Warren criticized the pardon, alleging corruption due to Zhao's financial support of Trump's stablecoin.
Political Implications
- The White House Press Secretary described Zhao's case as part of the Biden administration’s "war on cryptocurrency."
- Trump's pardon purportedly aims to end politically motivated prosecutions against digital asset innovators.
Zhao's future role within Binance remains uncertain following the pardon.