A cryptocurrency with close ties to the world’s largest digital-asset exchange, Binance Holdings, gained to reach an all-time high amid growing speculation that its co-founder Changpeng Zhao will be granted a US presidential pardon, which grants legal forgiveness to individuals convicted of federal crimes.
The BNB token, the fifth-largest by market value, surged over the weekend to reach $1,083 on Sunday, according to data compiled by Bloomberg. Later on Monday, the crypto retreated alongside its rivals, Bitcoin and Ether, in a broad market selloff.
What is driving the surge?
Zhao, who stepped down as Binance CEO in 2023, served a four-month prison sentence in 2024 as part of a $4.3 billion settlement with US authorities.
He publicly stated on a podcast in May that he was seeking a pardon from US President Donald Trump.
This statement fuelled intense speculation, with online betting platform Polymarket showing the odds of a pardon reaching a high of 64% on September 13 before settling at 50%.
Regulatory developments in the US which might benefit Binance were one factor that helped lift BNB to a record, Patrick Horsman, co-founder of Build and Build Corp told Bloomberg. “Rumors of CZ’s (Changpeng Zhao) possible pardon fuel further speculation,” he said.
Why is the pardon important to Binance?
Zhao’s pardon will significantly impact Binance. The crypto-exchange already has business ties with Trump as it helped in developing a stablecoin issued by World Liberty Financial Inc, which is one of Trump’s family ventures, Bloomberg News reported previously.
Recently, senator Elizabeth Warren pressed the US Justice Department on whether Binance is adhering to its 2023 settlement agreement with federal prosecutors over money-laundering and sanctions violations. The company may soon close a potential deal with the US Justice Department that would allow it to shed an external compliance monitor.
There is currently around $560 million worth of BNB token held by listed accumulators, comprising 0.4% of the total supply, according to CoinMarketCap data.
All about BNB token and Zhao’s net worth
The BNB token, formerly known as Binance Coin, was created by the crypto exchange in 2017 through an initial coin offering. Around 80 million tokens, now valued at around $83 billion, were allocated to the company’s founding team, which included Zhao. The money raised through that ICO was used to launch the Binance exchange.
Zhao’s current net worth stands at $$54.6 billion, making him the crypto industry’s richest man, according to data complied by Bloomberg. The surge in the BNB token’s value has only added to his wealth.
