On October 23, 2025, President Donald Trump issued a presidential pardon to Changpeng Zhao known widely as “CZ”, the founder and former CEO of Binance, the world’s largest cryptocurrency exchange by trading volume.
The White House press secretary Karoline Leavitt announced the clemency in a statement, framing the CZ pardon as part of a broader push to end the regulatory hostility toward the crypto sector by the Biden administration.
“A lot of people say that he wasn’t guilty of anything,” Trump said. “He served four months in jail and they say that he was not guilty of anything.” In the statement, the president added that Zhao had been “persecuted by the Biden administration.
”Reacting to the pardon, CZ thanked the president in a X post saying: “Deeply grateful for today’s pardon and to President Trump for upholding America’s commitment to fairness, innovation, and justice.”
The criminal case and what CZ pleaded to
CZ pleaded guilty in 2023 to a single charge tied to failures in Binance’s anti-money-laundering controls under the Bank Secrecy Act.
As part of his plea, he agreed to step down from Binance’s leadership, pay a $50 million personal fine, and serve a prison term.
Binance itself reached a record $4.3 billion settlement with U.S. authorities. Zhao later served a 4-month federal sentence against the DOJ’s 3 years sentencing demand.
What Trump’s CZ pardon says and why it matters
The White House portrayed the pardon as corrective, arguing Zhao and others in the crypto industry had been unfairly targeted.
Press secretary statements and White House messaging emphasized a pro-crypto stance and framed the pardon as consistent with Trump’s campaign promises to roll back what he has called the “war on crypto.”
Supporters in the industry hailed the move as a signal that the U.S. may adopt a friendlier approach to crypto businesses under Trump. However, critics reacted strongly.
Democratic lawmakers and consumer groups called the pardon alarming, noting Zhao had been convicted in connection with transactions that U.S. prosecutors said included links to drug trafficking, terrorism financing and child exploitation.
Congressional Democrats also accused the administration of favouring powerful industry figures over accountability.
What this could mean for Binance and U.S. regulation
The pardon removes a legal barrier that had complicated Zhao’s ability to engage with U.S. regulators and business partners.
Some analysts say it could clear a path for Binance to pursue renewed engagement with the U.S. market, although a presidential pardon does not erase the company’s civil obligations or settlements reached with regulators.
The U.S. Department of Justice (DOJ) and Securities and Exchange Commission (SEC) actions that produced the $4.3 billion settlement and other civil penalties remain separate legal matters.
Industry observers warn the practical effects will depend on a host of factors like how regulators respond, whether Congress seeks new oversight or legislation aimed at crypto exchanges, and how international regulators treat Binance going forward.
Political context and timing
The decision to pardon CZ comes amid a pattern of clemency decisions by the Trump administration favouring technology and crypto figures.
Many in crypto broadly supported Trump during the 2024 campaign and have since lobbied for looser enforcement and clearer rules.
Accordingly, Trump established a U.S. strategic crypto reserve in early 2025, expected to comprise Bitcoin, Ethereum, Cardano, Solana and XRP. As reported by Nitadel, crypto-friendly Senator Cynthia Lummis noted that funding for the strategic Bitcoin reserve can start anytime.
Critics say the pardons reflect the administration’s broader deregulatory posture and raise conflict-of-interest concerns given prior ties between crypto donors and the president’s circle.
It remains to be seen whether the DOJ, SEC or state regulators would change course or pursue additional civil actions
