Key Takeaways
- •Trump’s pardon restores CZ’s civil rights, marking a symbolic end to the Biden-era crackdown on crypto and repositioning the U.S. as open to innovation.
- •The market responded swiftly: BNB surged 5.65%, reflecting renewed investor confidence in Binance and growing optimism about a friendlier U.S. crypto climate.
- •The pardon closes the DOJ’s criminal case, not the SEC’s civil suit, signaling a shift in tone but leaving regulatory challenges still unresolved.
Trump’s pardon of Binance founder CZ ends years of legal battles and signals a major policy shift — declaring the U.S. “crypto war” officially over.
Background: From Lawsuits to a Presidential Pardon
On October 24, 2025, former U.S. President Donald Trump officially granted a full presidential pardon to Changpeng Zhao (CZ), the founder of Binance, the world’s largest cryptocurrency exchange.
The decision marks the culmination of a two-year legal saga that has shaped the global crypto industry.
The story began in June 2023, when the U.S. Securities and Exchange Commission (SEC) filed a sweeping lawsuit against Binance and its CEO, alleging violations of securities laws and mismanagement of customer funds. By November that year, Zhao agreed to pay a record $4.3 billion fine and resigned from his CEO position.
He later pleaded guilty to failing to maintain adequate anti–money laundering controls under the Bank Secrecy Act, a case handled by the U.S. Department of Justice (DOJ).
In May 2025, the SEC voluntarily dismissed its civil lawsuit “with prejudice,” dropping all remaining charges related to securities registration and disclosure violations. However, the DOJ’s criminal case remained unresolved — until this week.
Trump’s pardon specifically clears that criminal conviction, restoring Zhao’s civil rights, including eligibility for travel, visas, and executive roles.
White House Press Secretary Karoline Leavitt stated that Trump “exercised his constitutional authority to pardon Mr. Zhao, who was targeted during the Biden administration’s war on cryptocurrency.” She added, “That war is now over.”
The Political Message Behind the Move
Beyond its legal implications, the pardon sends a powerful political signal. It represents a shift from the Biden administration’s enforcement-heavy approach toward a more innovation-friendly stance.
Under Biden, regulators viewed Binance and other crypto firms as potential threats to financial stability, often emphasizing consumer protection and compliance. Trump’s decision reframes the narrative, portraying Zhao as a victim of government overreach rather than a criminal.
This move draws a clear contrast between administrations: while the previous government “waged war” on digital assets, Trump’s camp now presents itself as a champion of innovation, free markets, and individual financial freedom.
Strategically, it also aligns with Trump’s broader campaign message of economic revitalization and deregulation.
Market Reaction: BNB Surges as Confidence Returns
Markets responded swiftly. Following the news, BNB, Binance’s native token, surged 5.65% within 24 hours, compared to only 0.1% the day before. The rally reflected not only short-term trading enthusiasm but also renewed investor confidence in Binance’s stability and long-term prospects.
Interestingly, the pardon was signed on Wednesday but became public on Thursday night. The delayed disclosure surprised traders and amplified the market’s reaction. For Binance, this could pave the way to rebuild relationships in the U.S., regain institutional trust, and accelerate its global compliance efforts.
Legal Distinctions That Matter
A key misunderstanding circulating online involves the difference between the SEC’s civil case and the DOJ’s criminal charges. These were entirely separate matters:
- •The SEC pursued civil allegations that Binance offered unregistered securities and misled investors.
- •The DOJ charged Zhao criminally under the Bank Secrecy Act for failing to establish sufficient anti–money laundering safeguards.
The SEC’s May 2025 withdrawal ended the civil proceedings, while Trump’s pardon erased the criminal conviction. The distinction is crucial: one ended litigation; the other restored Zhao’s personal legal status.
Symbolism and Signals
To the broader crypto community, the message is clear — the “crypto war” is officially over.
While regulators will continue to enforce compliance, the tone has shifted from hostility to cautious engagement. This moment marks a symbolic turning point in the relationship between Washington and the digital asset sector.
It also reinforces the growing partisan divide in U.S. crypto policy. Under Democrats, enforcement dominated the agenda; under Trump, deregulation and innovation are taking center stage. This transformation could shape the next decade of U.S. policy on stablecoins, DeFi, and blockchain infrastructure.
What Comes Next for CZ and Binance
With his record cleared, CZ now faces a choice: return to a public leadership role or continue focusing on education and philanthropy. In recent months, he has explored blockchain literacy initiatives and financial inclusion programs worldwide.
For Binance, the challenge is to sustain credibility while expanding globally. Although the pardon improves its reputation, it doesn’t automatically reopen U.S. markets. To move forward, the company must continue prioritizing transparency, compliance, and technological integrity to maintain regulators’ confidence.
A Closing Thought
Trump’s pardon of CZ is more than a personal redemption — it’s a defining moment for the intersection of politics, regulation, and innovation. It highlights the ongoing tension between control and freedom, between the old financial order and the new decentralized one.
The “crypto war” may be declared over, but the struggle for legitimacy, regulation, and trust continues.
Whether this event sparks a genuine era of collaboration or simply temporary optimism will depend on how the industry proves it can be both compliant and revolutionary at the same time.