Trump Pardons Binance Founder Changpeng Zhao, Ending Legal Battle Over Crypto Crackdown
President Donald Trump has officially pardoned Changpeng Zhao — better known as CZ — the founder of Binance, the world’s largest cryptocurrency exchange. The move wipes clean Zhao’s conviction for money-laundering violations and marks a sharp turn in the U.S. government’s stance toward the crypto industry.
The White House confirmed the pardon on Thursday, saying Trump “exercised his constitutional authority” to grant clemency to Zhao, who had been prosecuted under the Biden administration. “In their desire to punish the cryptocurrency industry, the Biden Administration pursued Mr. Zhao despite no allegations of fraud or identifiable victims,” White House Press Secretary Karoline Leavitt said.
The Case Against Zhao
Zhao pleaded guilty in November 2023 to violating the Bank Secrecy Act after failing to implement effective anti–money laundering controls at Binance. The U.S. Department of Justice said Zhao and his company had “willfully violated U.S. economic sanctions in a deliberate effort to profit from the U.S. market.”
As part of a $4.3 billion settlement with the DOJ, Zhao stepped down as Binance CEO, paving the way for Richard Teng to take over the company’s leadership. Federal prosecutors had pushed for a three-year prison term, but the judge ultimately sentenced Zhao to just four months in April 2024 — a decision the court itself described as unusually lenient given the government’s request.
Trump’s Political Message
The pardon arrives amid Trump’s broader attempt to redefine his administration’s relationship with digital assets. His campaign and family’s own crypto venture, reportedly generating billions since the 2024 election, has drawn attention to his increasingly open embrace of the crypto world.
“This pardon sends a clear signal that America is back to supporting innovation instead of criminalizing it,” said a source close to Trump’s campaign, echoing the White House statement that framed the move as the “end of the Biden Administration’s war on crypto.”
Why It Matters for Binance and the Industry
For Binance, the pardon removes one of its biggest legal clouds. The company has been quietly lobbying for months to restore its U.S. operations and regulatory standing. Analysts say the decision could open the door for Binance to re-enter the American market and regain lost investor confidence.
Zhao, one of the most influential figures in global finance, built Binance into a crypto empire that at its peak handled more daily trading volume than all U.S. exchanges combined. Beyond Binance, CZ has also funded blockchain startups through his investment arm, Yzi Labs.
A Symbolic Win for Crypto
Zhao’s pardon isn’t just about one man — it’s a signal that the political winds around cryptocurrency may be shifting. Trump’s decision contrasts sharply with years of aggressive enforcement actions under the Biden administration and could reshape how Washington approaches the digital economy.
As one industry insider put it, “With CZ free and Binance back in play, this feels like crypto’s second chance in America.”
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