CZ Says He’ll Reinvest Binance’s $4B Fine in the US if Refunded
Key Takeaways
- CZ has publicly entertained the idea of a fine refund from the U.S. government.
- The disgraced founder said he would reinvest any returned portion of Binance’s $4.3 billion settlement back into America.
- However, legal experts have stressed that such refunds are effectively impossible.
Binance founder Changpeng Zhao (CZ) has raised the prospect of the U.S. granting a refund to part of the record-setting $4.3 billion fine the exchange paid authorities last year, telling followers he would reinvest any returned funds back into the country.
The comments came over a year after the disgraced founder was released from custody following a four-month sentence for anti-money-laundering violations.
Although some of CZ’s followers have responded with gratitude, others believe the former founder is simply playing a “long game of diplomacy.”
Try Our Recommended Crypto Exchanges
Sponsored
Disclosure
We sometimes use affiliate links in our content, when clicking on those we might receive a commission at no extra cost to you. By using this website you agree to our terms and conditions and privacy policy.
CZ To Refund the U.S.?
Responding on X to a question from blockchain author and commentator Anndy Lian, who asked whether the U.S. might “refund your $4.3 billion since you are pardoned,” Zhao called the issue a “delicate question.”
Zhao wrote: “I appreciate the pardon already. There is a balance in asking for more vs ‘what is fair’ vs appreciate what you got already.”
He added that if any refund were granted, he intended to invest it on U.S. soil “to show our appreciation,” while clarifying that he has not yet made a formal request.
Lian responded that CZ’s goal to invest back into America was “a good take.”
The Legal Reality
Under his plea deal, Zhao personally paid a $50 million criminal fine, while Binance agreed to forfeit $4.3 billion to settle federal investigations involving the Department of Justice, FinCEN, and the CFTC.
However, although CZ was pardoned, the presidential waiver does not typically unwind monetary penalties already paid.
Penalties, particularly those tied to criminal settlement, are generally final and non-refundable, largely because they have already been transferred to the U.S. Treasury or another government entity.
A pardon also typically does not interfere with corporate settlements already completed, which, in Binance’s case, covered years of alleged compliance failures.
“If money is paid to the government, you can’t get the money back except through a congressional appropriation,” a former clemency lawyer with the Department of Justice told Al Jazeera.
Community Response
The community’s response to CZ’s claims of optimistic “appreciation” has been mixed, with some expressing that CZ’s comments sounded like a PR move.
One X user said : “Sounds like he’s playing long game diplomacy.”
Another wrote : “Convenient timing for a pr move when everything’s bleeding out. Curious what ‘reinvest’ actually means tho.”
“Cute gesture, but you can’t buy your way out of surveillance when everything’s transparent anyway,” said another.
Another X user said ? “Who else thinks the $4.3B was the cost of the Pardon? 😅”
However, some of CZ’s followers did continue to express gratitude.
“That’s very thoughtful of you. Yeah, investing it in America if they refund the money is not a bad idea at all,” one said.
CZ Pushes Back on X Endorsements
Last week, CZ cautioned his millions of followers against interpreting his social-media activity as a signal of credibility.
The comments followed reports that some users were buying and selling X accounts, in some cases for thousands of dollars.
“Don’t buy handles that I follow. I will unfollow any sold accounts,” Zhao wrote on X , adding that he follows accounts “randomly.”
He stressed: “My follow means nothing, not endorsement.”
Read More: CZ Says He’ll Reinvest Binance’s $4B Fine in the US if Refunded