US President Donald Trump has officially pardoned Changpeng Zhao, the founder and former chief executive of Binance, the world’s largest cryptocurrency exchange. The move marks a significant policy shift in Washington’s approach to the industry, and has reignited debate over the Trump administration’s deepening relationships with crypto executives.
Zhao, widely known as “CZ,” had been sentenced in April 2024 to four months in prison for violating US money-laundering laws. Binance had pleaded guilty to similar charges and agreed to pay $4.3 billion in fines and forfeitures, one of the largest corporate settlements in American history. Zhao himself had also paid $50 million personally.
He served his sentence and was released in September 2024. The pardon, announced this week, removes restrictions that had barred him from running financial ventures in the US, though it remains unclear whether he will be allowed by regulators to return to Binance in an official capacity.
White House defends decision as “reversal of Biden’s war on crypto”
White House Press Secretary Karoline Leavitt said in a statement to the BBC that Trump’s decision was based on what she described as “overreach” by the previous administration.
“President Trump exercised his constitutional authority by issuing a pardon for Mr. Zhao, who was prosecuted by the Biden Administration in their war on cryptocurrency,” Leavitt said. “In their desire to punish the cryptocurrency industry, the Biden Administration pursued Mr. Zhao despite no allegations of fraud or identifiable victims.”
She added that “the Biden Administration’s war on crypto is over,” signaling a broader policy shift to make the United States what Trump has called “the crypto capital of the world.”
Zhao expressed gratitude to Trump, writing on X that he was “deeply grateful for today’s pardon” and that he would work to “make America the Capital of Crypto and advance web3 worldwide.”
Deeply grateful for today’s pardon and to President Trump for upholding America’s commitment to fairness, innovation, and justice.
— CZ 🔶 BNB (@cz_binance) October 23, 2025
🙏🙏🙏🙏
Will do everything we can to help make America the Capital of Crypto and advance web3 worldwide.
(Still in flight, more posts to come.)…
Ties between Trump and Binance under renewed scrutiny
The pardon has revived questions over potential conflicts of interest between Trump’s family businesses and the crypto world. Reports from The Wall Street Journal alleged that representatives of Binance and World Liberty Financial, a Trump-backed crypto venture, had discussed partnerships and potential stake acquisitions in recent months.
Binance has worked with firms linked to Trump’s own digital asset projects, including Dominari Holdings, a company whose advisory board features Trump’s sons. NBC News also reported that Binance hired lobbyist Charles McDowell, a close friend of Donald Trump Jr., and paid his firm $450,000 in the month preceding the pardon announcement.
Both the White House and Binance declined to respond to questions about the ethical implications of these relationships. A Binance spokesperson called the pardon “incredible news” and thanked Trump “for his leadership and for his commitment to make the U.S. the crypto capital of the world.”
Critics call move “corrupt” and warn of erosion of justice
The decision prompted swift criticism from Democrats and watchdog groups. Senator Elizabeth Warren labeled the pardon “a kind of corruption,” accusing Trump of using presidential powers to protect wealthy supporters and business partners.
“When you pardon individuals who enabled criminal activity in the financial system — and who are tied to your own financial interests — you send a dangerous message,” Warren said.
She warned that pending congressional legislation to regulate the crypto market would have to address what she described as “unchecked executive favoritism.”
Prominent venture capitalist Joe Lonsdale, a Trump supporter, also questioned the move, saying on social media that the president had been “terribly advised” and that the pardon “makes it look like massive fraud is happening around him in this area.”
Binance and Zhao look ahead
Zhao stepped down as Binance CEO in 2023 as part of the settlement agreement with US regulators. At the time, he admitted to errors in oversight and said stepping aside was “the right thing to do.” The exchange remains a central player in global cryptocurrency trading, processing more than $65 billion in transactions daily on average.
Since taking office, Trump has promised to loosen regulations on digital assets, establish a national cryptocurrency reserve, and allow Americans to invest retirement funds in crypto. His decision to pardon Zhao underscores his administration’s alliance with the digital asset industry, but also cements controversy over how closely those ties intersect with his personal financial interests.
With the pardon now official, Zhao’s legal record in the US is cleared, though doubts remain about how regulators and lawmakers will view his potential return to the forefront of the crypto world.
Gunel Ismayilova
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