US President Donald Trump, in a surprise move on Thursday, granted a full pardon to Changpeng Zhao — also known as CZ — the founder of Binance, the world’s largest cryptocurrency exchange. The decision marks a dramatic reversal of the US government’s previous stance on the crypto industry.
“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,” The Guardian quoted the White House as saying in a statement. The message ended with a clear declaration: “The war on crypto is over.”
Zhao’s Legal Troubles and Fall from Power
Zhao, once one of the world’s richest individuals, pleaded guilty in 2023 to failing to maintain an anti–money laundering programme at Binance. The case resulted in a massive $4.3 billion settlement with US authorities. As part of the deal, Zhao stepped down as Binance’s CEO and was sentenced to four months in prison.
Before his legal troubles, Zhao had transformed Binance into the biggest player in the global crypto market. However, US regulators later banned the platform from operating in the country over compliance concerns.
Trump’s pardon now restores Zhao’s legal status and could pave the way for Binance to rebuild its operations in the US.
Binance Welcomes the Move
Binance quickly expressed its gratitude to the US president after the announcement. “Incredible news of CZ’s pardon today. We thank President Trump for his leadership and for his commitment to make the US the crypto capital of the world,” a company spokesperson said, according to The Guardian.
The pardon is viewed as a major win for Zhao and Binance after months of speculation, lobbying, and political debate.
Trump’s Crypto-Friendly Turn
The decision also reflects the Trump administration’s growing support for the cryptocurrency industry. Since returning to the White House, Trump has promoted policies aimed at loosening regulations on digital assets.
The move coincides with the Trump family’s growing involvement in the crypto space. Their company, World Liberty Financial, has launched its own cryptocurrency and is pursuing partnerships with major crypto firms.
According to The Wall Street Journal, representatives from the Trump family’s venture had held talks with Binance about buying a stake in its US branch. Zhao, however, denied that his pardon was linked to any such discussions.
“Fact: I have had no discussions of a Binance US deal with … well, anyone,” Zhao posted on X in March. “No felon would mind a pardon.”
Business Ties Between Binance and Trump’s Crypto Firm
Despite Zhao’s denial, Binance has played a key role in boosting World Liberty Financial. Earlier this year, the exchange processed a $2 billion transaction from an Emirati investment fund that used the Trump-backed cryptocurrency. The deal helped legitimize the family’s digital currency project and significantly increased its market value.
“We thank MGX and Binance for their trust in us,” said Zach Witkoff, founder of the Trump family’s crypto firm, during a conference in Dubai announcing the deal in May.
Democratic Lawmakers Raise Concerns
Trump’s pardon and his growing ties to Binance have triggered strong criticism from Democratic lawmakers.
In a joint statement, Senators Elizabeth Warren and members of the Senate Banking Committee warned that Binance’s cooperation with the Trump administration could “enrich the president” while weakening financial oversight.
The Department of Justice had earlier accused Binance of failing to report over 100,000 suspicious transactions, some allegedly linked to terrorist organizations such as al-Qaida and Hamas.
The Securities and Exchange Commission (SEC) also filed a lawsuit against Binance in 2023, though the case was dropped soon after Trump returned to power.