In a dramatic political and financial development, U.S. President Donald Trump has issued a presidential pardon to Changpeng “CZ” Zhao, the founder and former CEO of Binance, the world’s largest cryptocurrency exchange. The move, first reported by The Wall Street Journal, marks one of Trump’s most controversial decisions since returning to office and signals a major shift in the United States’ stance on cryptocurrency regulation.
Zhao, a Chinese-born Canadian citizen, pleaded guilty in November 2023 to charges related to failing to maintain an effective anti-money-laundering (AML) programme at Binance. He was sentenced in April 2024 to four months in a U.S. federal prison, a sentence he completed in September 2024.
On October 22, President Trump formally signed the pardon after what sources described as “months of lobbying” from Zhao’s legal team and family. The White House confirmed the decision on Thursday, with Press Secretary Karoline Leavitt describing Zhao’s prosecution as part of “the Biden Administration’s war on cryptocurrency.”
Trump Declares the “War on Crypto Is Over”
In an official statement, Leavitt said,
“President Trump exercised his constitutional authority by issuing a pardon for Mr Zhao, who was prosecuted by the Biden Administration in their war on cryptocurrency. In their desire to punish the industry, the Biden Administration pursued Mr Zhao despite no allegations of fraud or identifiable victims.”
She added that the previous administration’s actions had “damaged the United States’ reputation as a global leader in technology and innovation,” asserting that “the Biden Administration’s war on crypto is over.”
The pardon follows a pattern of high-profile clemency decisions by Trump, including the recent commutation of former New York Representative George Santos, who had pleaded guilty to wire fraud and aggravated identity theft.
Notably, Trump’s own family has reportedly become active in the crypto space. The Wall Street Journal previously revealed that the Trump family’s crypto venture, launched after the 2024 election, has generated over $4.5 billion, allegedly supported by a partnership with a trading platform linked to Binance.
CZ’s Legal Saga: From Market Titan to Convicted Executive
CZ’s journey from crypto pioneer to convicted executive has been one of the most closely watched sagas in the digital asset industry.
The U.S. Department of Justice (DOJ) launched an extensive criminal investigation into Binance’s operations in 2020, alleging that the exchange violated multiple financial regulations by offering unregistered investment products and failing to implement AML safeguards.
By 2021, Binance had withdrawn from several major markets, including the U.K. and Germany, amid mounting global regulatory pressure. The company’s troubles escalated in 2023 when the Securities and Exchange Commission (SEC) filed a major civil lawsuit, accusing Binance of operating unlawfully in the U.S. and failing to protect investors from market manipulation.
The SEC case led to the DOJ’s criminal probe, which revealed that Binance had violated the Bank Secrecy Act (BSA) and allowed sanctioned nations such as North Korea to process transactions. According to investigators, over 100,000 illicit transactions had passed through the platform without appropriate oversight or reporting.
In November 2023, Zhao pleaded guilty in a Seattle federal court to one count of AML violations as part of a $4.3 billion settlement between Binance and U.S. authorities. The company was also charged with operating an unlicensed money-transmitting business and violating the International Emergency Economic Powers Act.
Federal prosecutors sought a three-year prison term for Zhao, but the presiding judge dismissed the request, calling it “unreasonably severe.” Zhao ultimately served four months and resigned as Binance CEO.
Crypto Community Reacts to Trump’s Decision
The pardon has triggered mixed reactions across the crypto world. Supporters hailed it as a historic victory for digital freedom, while critics warned it could undermine accountability in the industry.
Crypto investors celebrated on social media with hashtags such as #CZPardon and #CryptoWins, viewing the decision as a symbolic end to years of harsh regulatory crackdowns. Some analysts believe the pardon could boost market sentiment and encourage institutional participation in the digital asset space.
However, legal experts expressed concern that the decision might embolden other executives facing scrutiny. “While this pardon is politically significant, it sends a concerning message that financial compliance can be negotiated through influence rather than reform,” said one Washington-based policy analyst.
What Comes Next for CZ and Binance
Following his release, Zhao has largely stayed out of the public eye, though he remains a major shareholder in Binance. His pardon restores his civil and political rights in the United States, potentially allowing him to re-enter the crypto sector.
Meanwhile, Binance continues to operate under strict compliance reforms imposed by the DOJ settlement. The exchange has appointed new leadership, prioritised transparency and regulatory cooperation, and expanded its operations in Asia and the Middle East.
Trump’s pardon of CZ is more than a personal reprieve, it represents a political and ideological shift in how the United States perceives digital assets. For the global crypto industry, it may mark the beginning of a new regulatory era, one defined less by enforcement and more by collaboration.
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