In a move that’s sure to raise eyebrows across Washington and Wall Street alike, President Donald Trump has issued a pardon for one of the most controversial figures in the cryptocurrency world: Changpeng Zhao, co-founder of Binance and a convicted criminal in the U.S. government’s crackdown on crypto.
Zhao—known simply as CZ—pleaded guilty last year to a money laundering charge after failing to maintain an effective anti-money laundering program at Binance, the world’s largest crypto exchange. In May 2024, he was sentenced to four months in prison and fined heavily. Binance itself copped more than $4 billion in fines, admitting to violations ranging from unlicensed money transmitting to sanctions breaches.
But despite these serious charges, Trump stepped in and issued a pardon for Zhao, a move confirmed Thursday by White House press secretary Karoline Leavitt. Her statement laid bare the political dimension behind the pardon, saying Trump “exercised his constitutional authority by issuing a pardon for Mr. Zhao, who was prosecuted by the Biden Administration in their war on cryptocurrency.”
As reported by The Wall Street Journal, The statement didn’t just stop at the pardon. Leavitt also condemned the previous administration’s handling of Zhao’s case, arguing that the sentencing was overly harsh — a viewpoint Trump and his closest advisers share.
This isn’t just a pardon; it’s a clear signal that Trump considers Zhao—and by extension Binance—an ally in his bid to make the U.S. the “crypto capital of the planet.” The president’s family crypto firm, World Liberty Financial, which relies heavily on Binance’s platform, adds a personal layer to this decision.
The pardon could clear the path for Binance’s return to the U.S. market, which the company has struggled to access due to mounting regulatory pressure under the previous administration.
This move ignites questions about the blending of politics, personal interests, and the future of crypto regulation. Trump’s intervention sharply contrasts with the Biden administration’s crackdown, marking a shift toward a more crypto-friendly stance—but not without controversy.
