U.S. President Donald Trump has granted a presidential pardon to Changpeng “CZ” Zhao, the founder and former chief executive of cryptocurrency exchange Binance, according to The Wall Street Journal, which cited people familiar with the matter. The decision was signed on Wednesday, though the pardon has not yet been listed on the White House website or in the Federal Register, where such actions are typically published.
White House Press Secretary Karoline Leavitt confirmed the pardon in a statement, 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.” She added that Zhao’s case represented “overreach” and declared that “the Biden Administration’s war on crypto is over.” The White House did not elaborate on whether Zhao had formally requested the pardon or what conditions, if any, were attached. Binance did not immediately respond to requests for comment.
CZ’s Conviction and Prison Sentence
Zhao pleaded guilty in November 2023 to one count of failing to maintain an adequate anti-money laundering program at Binance, a violation of the Bank Secrecy Act. Under his plea deal, he stepped down as CEO and agreed to pay a $50 million fine. Binance itself paid $4.3 billion in penalties, which was one of the largest corporate settlements in U.S. history.
In April 2024, Zhao was sentenced to four months in prison and was released in September of the same year. His case became a flashpoint for the broader debate over how aggressively U.S. authorities should police cryptocurrency exchanges. At the time, Zhao admitted compliance failures but denied any intent to facilitate illicit finance. The pardon effectively wipes away Zhao’s conviction, potentially clearing legal barriers that had prevented him from holding executive roles at Binance or other regulated financial entities.
Investor Takeaway
The pardon ends the most prominent U.S. criminal case in crypto history and may restore confidence among Binance investors—but could draw criticism from regulators and political opponents.
Speculation and Political Backdrop
Rumors of a possible pardon began circulating in early September after Zhao quietly removed the “ex-@binance” label from his social media bio. Betting markets soon reflected growing expectations that Trump would intervene. Reports from Fox Business and The New York Post suggested that discussions inside the White House had accelerated in recent weeks, with Trump allies describing the case as “weak” and “overpunished.”
Zhao initially denied reports that he was lobbying for clemency but later acknowledged on a podcast that he had filed a formal pardon request. Trump’s decision follows a series of crypto-related pardons, including those for BitMEX co-founders Arthur Hayes, Ben Delo, and Samuel Reed, as well as Silk Road founder Ross Ulbricht. The latest pardon adds to Trump’s effort to draw a contrast with the previous administration’s regulatory posture toward digital assets. The move has already sparked debate over whether it signals a friendlier stance toward the crypto industry ahead of next year’s elections.
Could Zhao Return to Binance?
Zhao remains Binance’s largest shareholder and retains influence over strategic decisions, though his plea agreement included a lifetime ban on holding executive authority at the exchange. Analysts told Axios in September that any potential return to leadership would depend on regulatory clearance and the reaction of Binance’s current CEO, Richard Teng. Trump’s pardon could complicate that arrangement.
While it eliminates Zhao’s felony conviction, his previous plea terms with the Department of Justice remain a matter of record. Legal experts said it is unclear whether a pardon would automatically void the leadership restrictions embedded in that deal. Still, the development is likely to bolster Zhao’s standing within the global crypto community. Many in the industry view his case as emblematic of tensions between innovation and enforcement in the U.S. financial system.
Investor Takeaway
If Zhao returns to Binance, it would reshape leadership dynamics at the world’s largest crypto exchange and test how U.S. regulators respond under a new political climate.
Market and Industry Reaction
Binance’s internal channels were reportedly abuzz with the news, though the company has yet to issue an official statement. Industry analysts said the pardon could boost morale among Binance’s global workforce and customers who had grown wary after years of legal scrutiny in the U.S., U.K., and Europe.
Political analysts see the pardon as part of Trump’s wider outreach to crypto voters and industry donors. The decision may also deepen partisan divides over digital asset regulation, as Democrats are likely to frame it as leniency toward corporate offenders. The Department of Justice has not commented on whether Zhao’s fine or Binance’s settlement obligations could be revisited following the pardon. For now, Zhao’s legal record has been cleared, setting the stage for one of the most consequential returns in the crypto industry since FTX’s collapse. Whether he seeks to reclaim a leadership role—or remains a symbolic figurehead—will determine how markets interpret the pardon’s long-term implications.