U.S. President Donald Trump issued a full and unconditional pardon to Changpeng Zhao—widely known as “CZ”—the billionaire co-founder and former CEO of Binance, the world’s largest cryptocurrency exchange by trading volume.
Zhao had pleaded guilty in November 2023 to violating the Bank Secrecy Act by failing to implement adequate anti-money laundering (AML) safeguards at Binance, leading to a $4.3 billion settlement with the U.S. Department of Justice and his resignation as CEO.
He served a four-month prison sentence, ending in September 2024.The pardon, announced by the White House, immediately sparked a surge in Binance’s native token BNB, which rose about 2% in early trading, with analysts predicting potential new highs as CZ could reclaim a leadership role and expand Binance’s U.S. operations.
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Zhao, who remains Binance’s majority owner, posted on X: “Deeply grateful for today’s pardon and to President Trump for upholding America’s commitment to fairness, innovation, and justice. Will do everything we can to help make America the Capital of Crypto and advance web3 worldwide.”
A Binance spokesperson echoed this, thanking Trump for positioning the U.S. as the “crypto capital of the world.” Zhao admitted that Binance willfully violated AML laws, allowing criminals—including those involved in child sex abuse, drug trafficking, and terrorism—to launder billions through the platform without proper oversight.
No fraud or direct victim harm was alleged against Zhao personally. In April 2024, a Seattle federal court imposed the light four-month term, far below prosecutors’ recommendation of three years, citing Zhao’s cooperation and lack of prior record.
Pardon Lobbying: Binance mounted a months-long campaign, hiring lawyers and lobbyists with Trump administration ties. This followed a July 2025 deal where an Emirati firm used the Trump family’s World Liberty Financial stablecoin for a $2 billion Binance investment.
The move fits Trump’s pattern of crypto-friendly actions since his January 2025 inauguration, including pardoning Silk Road creator Ross Ulbricht and rolling back Biden-era regulations. However, it has drawn sharp criticism over potential conflicts of interest.
Trump Family Ties: The Trump sons’ World Liberty Financial has generated over $4.5 billion in value post-election, partly through Binance partnerships. Critics, including ethics experts, argue this creates a “pay-to-pardon” dynamic.
Sen. Elizabeth Warren (D-Mass.) called it “corruption,” stating: “First, Changpeng Zhao pleaded guilty to a criminal money laundering charge. Then he boosted one of Donald Trump’s crypto ventures and lobbied for a pardon. Today, Donald Trump did his part.”
White House Press Secretary Karoline Leavitt dismissed this as Biden-era “overreach” in a “war on cryptocurrency,” emphasizing a thorough review with no fraud allegations.
On X, reactions ranged from celebration “CZ free—bullish for Solana?” to cynicism “imagine getting ruggged by CZ… and praising their pardons”.
Some users tied it to broader market hype, predicting altcoin rallies. Trump, when asked, said he acted on recommendations from others and didn’t know Zhao personally: “A lot of people say he wasn’t guilty of anything.”
BNB +2%; broader crypto optimism as U.S. policy shifts pro-innovation. Easier Binance U.S. expansion; could boost tokenized assets and DeFi TVL by billions.
Regulation signals lighter touch on AML for crypto; may influence pending market structure bills. Heightened scrutiny from Democrats; Warren urges Congress to block “lawlessness.”
CZ’s role frees him from felony conviction; positions him for Binance return. Reinforces his influence as crypto’s top entrepreneur, aiding global web3 push. This pardon underscores the deepening fusion of politics and crypto, with Trump leveraging executive power to align with an industry that has poured millions into his ventures.
While supporters hail it as justice for innovation, detractors see it as emblematic of unchecked elite favoritism. As X buzz intensifies, the story’s fallout on markets and policy will unfold rapidly.
