Details of Trump's pardon for CZ exposed: Release may be related to family encryption business, involving USD1 stablecoin $2 billion metatransaction.

Details have emerged about the clemency granted to the founder of a mainstream CEX, CZ, by U.S. President Donald Trump. According to sources cited by The Wall Street Journal, CZ's release occurred after months of efforts by his family to support Trump’s cryptocurrency company, World Liberty Financial. While the market interprets this clemency as significant Favourable Information, it has also sparked controversy over the integrity of the judicial system and speculation about the former FTX founder, SBF, receiving a pardon. Following the announcement of the clemency, the CEX Platform Token BNB surged 5%, with market targets set at $1,400.

The Behind-the-Scenes and Political Controversy of CZ's Pardon

Trump granted a pardon to CZ on Wednesday (specific date), ending his 11-month legal disputes and political games.

· Connection with Trump family business: According to insiders, CZ has reached a $2 billion deal involving a USD1 stablecoin with Trump's family's encryption company World Liberty Financial through his CEX and its partner Emirati firm MGX. Although CZ previously denied that a pardon was a condition for the business transaction, this timeline has raised questions about whether his release involved favourable information.

· Argument of Political Persecution: Trump has privately expressed to advisors that he sympathizes with CZ regarding the argument of political persecution, and many insiders believe that the fraud charges against CZ are relatively weak and should not result in a felony conviction and imprisonment. The White House also emphasized that the prosecution of CZ is part of the “Biden Administration's War on Encryption.”

· Opposition from Democratic Congress Members: The pardon has sparked strong opposition from Democratic Congress members. Senator Elizabeth Warren and others have written to the White House, expressing that CZ's pardon application and its financial ties with the president's family in mainstream CEX “raise urgent concerns about the integrity of the judicial system.”

Actions After CZ's Release and the Market Reaction of BNB

CZ previously pleaded guilty for failing to maintain effective anti-money laundering procedures and paid a fine of 50 million USD. Mainstream CEX paid a total of 4.3 billion USD in fines, and he completed his sentence and was released on September 27, 2024.

· BNB price surges: After the announcement of the pardon news, the platform token BNB rose by 5% to 1,129.05 USD. Community sentiment has turned bullish, with traders targeting price levels of 1,400 USD and higher at 1,500 USD. If BNB can break through the resistance level of 1,150 USD, it will confirm bullish momentum. However, if it falls below the support level of 1,100 USD, it may trigger profit-taking and retest the 1,050 USD area.

· Controversy over mainstream CEX: Although the amnesty was seen as Favourable Information by the market, the mainstream CEX faced strong user dissatisfaction due to technical issues that led to a liquidation of 19 billion dollars during the market crash on October 10. Although the exchange has allocated 700 million dollars for compensating affected users, some users still choose to close their accounts, believing that the platform is not trustworthy.

· CZ thanks and announces new plans: CZ expressed his gratitude to President Trump on the X platform and promised to “do everything possible to help the United States become the capital of encryption and promote the global development of Web3.” At the same time, he also announced that “a new book will be released soon.”

Polymarket Predictions and SBF's Pardon Speculation

CZ's pardon has opened the door for his return to the global encryption stage, with the odds on Polymarket for CZ's return to the mainstream CEX soaring to 82%, although it later stabilized around 36%. This event has also reignited speculation about the potential pardons for other convicted encryption figures.

· SBF's chance of pardon: Polymarket data shows that former FTX founder Sam Bankman-Fried (SBF) has an approximately 9% chance of receiving a pardon from Trump in 2025. SBF is serving a 25-year prison sentence for using billions of dollars of FTX customer funds for high-risk investments. Reports indicate that his parents are seeking a special pardon, but the crypto community generally believes the likelihood of him receiving a pardon is “extremely low.”

· SBF's Defense and Appeal: SBF insists in a prison interview that he has never committed fraud and claims that handing FTX over to John Ray III was the “biggest mistake” he made. His parents are appealing the conviction, claiming that the law firm Sullivan & Cromwell, responsible for the bankruptcy liquidation, profited nearly 250 million dollars while pushing for his prosecution in the FTX bankruptcy case.

· Other potential candidates: Other potential pardon candidates on Polymarket include Roger Ver, who has a 17% chance of being pardoned. It is worth noting that CZ remains the largest shareholder of the mainstream CEX, holding 90% of the shares, with a net worth estimated at 75 billion dollars.

Conclusion

Trump's pardon of CZ is not only a major event in the encryption industry but also a reflection of the deep intertwining of American politics and crypto capital. Although CZ's release is the main driving force behind the surge in BNB prices, bringing short-term favourable information to the platform, the ensuing controversies over judicial fairness, as well as the rising speculation regarding the pardons of individuals like SB, will continue to be focal points of attention in the crypto market. CZ's high-profile comeback and his announcement of a “new project” indicate that this crypto giant will once again play an important role in the global Web3 space.

Disclaimer: This article is for informational purposes only and does not constitute any investment advice. The encryption market is highly volatile, and investors should make cautious decisions.