In a move that has sent ripples across the global crypto community, U.S. President Donald Trump has officially granted a presidential pardon to Changpeng “CZ” Zhao, the founder and former CEO of Binance, the world’s largest cryptocurrency exchange.
According to The Wall Street Journal, the pardon was signed on October 22, marking the culmination of months of lobbying by Zhao’s family and close associates. The decision arrives just weeks after Trump publicly expressed sympathy towards Zhao’s prosecution, describing the case as part of the previous administration’s “war on cryptocurrency.”
White House Press Secretary Karoline Leavitt confirmed the pardon on Thursday, stating:
“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.”
Leavitt further emphasised that the case against Zhao involved “no allegations of fraud or identifiable victims,” suggesting that the conviction was politically motivated and detrimental to America’s standing as a hub for financial innovation.
CZ’s Legal Battle and Conviction
Zhao’s legal troubles began in 2020, when U.S. authorities accused Binance of violating financial and securities regulations by offering unregistered investment products. Over the next few years, Binance faced increasing global scrutiny, pulling out of key markets including the U.K. and Germany in 2021 amid mounting regulatory pressure.
The situation worsened in 2023, when the U.S. Securities and Exchange Commission (SEC) filed a major civil lawsuit against Binance, alleging the company marketed illegal financial products and failed to prevent market manipulation. This civil action triggered a separate criminal investigation by the Department of Justice (DOJ).
The DOJ probe revealed multiple breaches of the Bank Secrecy Act (BSA), with investigators alleging Binance allowed more than 100,000 illicit transactions, some linked to sanctioned nations like North Korea. These revelations ultimately led to Zhao’s guilty plea in November 2023, admitting to failing to implement an effective anti-money laundering (AML) program at Binance.
As part of a broader $4.3 billion settlement with the DOJ, Zhao stepped down as CEO and was sentenced in April 2024 to four months in a U.S. federal prison, far below the three-year term requested by prosecutors. He completed his sentence in September 2024.
Trump’s Crypto-Friendly Turn
Trump’s pardon of Zhao signals a sharp political and economic pivot towards embracing cryptocurrency innovation. The move came only two months after reports revealed that the Trump family’s own crypto venture, which has generated around $4.5 billion since the 2024 election, had ties to a “trading platform quietly administered by Binance.”
In her statement, Press Secretary Leavitt sharply criticised the Biden administration’s handling of the case:
“The Biden Administration sought to imprison Mr Zhao for three years, a sentence so outside Sentencing Guidelines that even the Judge said he had never heard of this in his 30-year career.”
She added that the pardon marks “the end of the Biden Administration’s war on crypto,” signalling a new phase of pro-crypto governance under Trump’s leadership.
The decision also follows Trump’s recent commutation of former Congressman George Santos’ sentence, indicating a broader pattern of high-profile clemencies aimed at figures caught in politically charged prosecutions.
Implications for the Crypto Industry
The pardon has been widely interpreted as a symbolic victory for the cryptocurrency sector, particularly in light of Trump’s repeated promises to make the U.S. a “global leader in blockchain innovation.”
Crypto markets responded positively, with Binance Coin (BNB) witnessing a brief surge in trading volumes shortly after the news broke. Analysts suggest the pardon could restore some investor confidence in U.S.-based crypto activity, which had been dampened by years of regulatory crackdowns.
Industry observers also point to the potential for a regulatory reset, as Trump’s administration may move to dismantle or revise stringent crypto policies implemented during Biden’s term.
However, critics argue that the pardon blurs the line between political influence and judicial independence, particularly given the reported business ties between Trump’s own crypto ventures and Binance-linked entities.
The Road Ahead for CZ and Binance
Following his release and now, full pardon, Changpeng Zhao is expected to resume a more public role in the blockchain ecosystem. Although barred from holding executive positions at Binance under the settlement terms, he continues to wield influence as a major shareholder and thought leader in the crypto space.
For Binance, the presidential pardon represents a potential turning point. With its founder’s record wiped clean, the exchange may find it easier to rebuild regulatory trust in key markets and strengthen its position amid global competition.
As Trump’s statement declared, the “war on crypto is over.” Whether this marks a genuine policy transformation or a politically motivated manoeuvre, it undeniably reshapes the conversation around regulation, innovation and the future of digital finance in the United States.
