By pardoning Changpeng Zhao, Donald Trump not only signs a legal act but sends a strong signal to the crypto industry. The founder of Binance, convicted in 2023 for violations of anti-money laundering legislation, regains his freedom by a decision that contrasts with the hardline stance of the Biden administration. In a tense climate around crypto regulation, this gesture repositions Trump as a strategic ally of the sector and could breathe new life into Binance’s American ambitions.
In brief
- •The U.S. president grants a presidential pardon to Changpeng Zhao, founder of Binance, an unexpected decision that shakes the crypto industry.
- •Zhao pleaded guilty in 2023 for violations of anti-money laundering laws related to Binance’s operations in the U.S. He served a four-month prison sentence.
- •This pardon comes amid political tensions over cryptocurrency regulation in the U.S., with Trump calling the attack on Zhao a “political persecution” under Biden.
- •The pardon could reopen the door for Binance’s return to the U.S. market, despite the restrictions on the platform since 2023.
The Pardon of CZ: A Presidential Decision
Donald Trump officially granted a full presidential pardon this Wednesday, October 22, to Changpeng Zhao, founder of Binance. The latter had been found guilty in 2023 of violations of American anti-money laundering laws, within the framework of the platform’s international activities.
He had then pleaded guilty, assuming responsibility for the deficient management of Binance’s financial controls, which had earned him a four-month prison sentence, fully served until his release in September 2024.
Indeed, this pardon follows Trump’s desire to denounce what he sees as a political war against crypto players, led by the Biden administration.
Several key elements emerge from this decision:
- •The pardon was signed this Wednesday, ending Zhao’s criminal conviction.
- •Trump’s spokesperson, Karoline Leavitt, confirmed the president exercised his constitutional authority, stating the Biden administration’s war on crypto is over.
- •Binance, banned from the American market since 2023, could theoretically consider resuming its activities on American soil, although no official announcement has been made by the company.
A Political Pardon with Strategic Implications
The founder of Binance is said to have quietly hired lobbyist Ches McDowell early in the year, with the explicit objective of obtaining clemency from Donald Trump.
This approach was reportedly carried out in a context of gradual rapprochement between Zhao and influential figures in the Trump sphere, some involved in crypto projects supported by the president’s family.
Unlike the first part of the case, focused on judicial and regulatory elements, this dimension reveals the growing anchoring of crypto in governmental strategies.
The presidential pardon granted to CZ cannot be seen solely as a judicial measure. It carries a clear message to the pro-crypto electorate, which Donald Trump seems to want to attract in direct opposition to the hardline stance defended by Joe Biden. Trump’s spokesperson described this decision as a symbol of break.
This presidential pardon granted to Changpeng Zhao illustrates a clear change in the American executive’s posture towards cryptos. It could mark the beginning of a strategic repositioning of the exchange in the United States, despite technical failures.