The U.S. President Donald Trump has granted a presidential pardon to Changpeng Zhao (CZ), the founder of Binance, the world’s largest cryptocurrency exchange.
Zhao, a billionaire entrepreneur, had previously served a prison sentence after pleading guilty to failing to implement adequate anti-money-laundering controls on the Binance platform.
The exchange was accused of enabling the movement of illicit funds linked to child exploitation, drug trafficking, and terrorism.
The pardon, confirmed by the White House on Thursday, follows months of speculation after Zhao publicly requested clemency from Trump.
The decision comes amid growing scrutiny of Trump’s deepening ties to the crypto industry, particularly through his new venture, World Liberty Financial, launched in September alongside his sons, Donald Trump Jr. and Eric Trump.
According to Trump’s latest financial disclosure, the president earned over $57 million in 2024 from the company. World Liberty Financial recently introduced $1, a stablecoin pegged to the U.S. dollar, and has actively positioned itself as a conservative alternative to what Trump has called “politicized global finance.”
In what appears to be a major strategic alignment, a UAE-based investment fund announced plans to use $2 billion worth of $1 to acquire a stake in Binance a deal reportedly facilitated shortly before Zhao’s pardon.
White House Press Secretary Karoline Leavitt defended the decision, saying Zhao’s prosecution under the Biden administration was driven by “a desire to punish the cryptocurrency industry rather than uphold justice.”
She added that there were “no allegations of fraud or identifiable victims,” framing the pardon as part of Trump’s broader effort to “restore fairness” in financial innovation.
What you should know
Zhao, who built Binance into a global powerhouse before regulatory crackdowns intensified, expressed remorse during his 2024 court appearance, saying: “I failed here. I deeply regret my failure, and I am sorry.”
The pardon has already influenced investor sentiment. Both Binance Coin (BNB) and Bitcoin posted modest gains in intraday trading following the announcement, with analysts predicting the move could soften future U.S. regulatory stances toward crypto operators. However, critics warn it sets a dangerous precedent that could embolden bad actors within the industry.
Changpeng Zhao, the founder of Binance and a key figure in the global cryptocurrency ecosystem, was released earlier in 2024 from a California correctional facility after serving a four-month sentence for failing to enforce anti-money-laundering protocols.
The 47-year-old, widely known as “CZ,” had voluntarily returned to the U.S. from Dubai to face charges tied to Binance’s regulatory breaches. He was held at a low-security facility in Long Beach, California, and released two days ahead of schedule in line with standard weekend-release procedures.
This led to him stepping down as CEO with Richard Teng taking over as his successor. He has since reiterated during interviews that he has no plans to take up the CEO role.
As part of his settlement, Zhao paid a $50 million personal fine, while Binance agreed to a $4.3 billion penalty to resolve U.S. allegations over sanctions and compliance violations.
