Donald Trump has issued a presidential pardon for Changpeng Zhao, the founder of Binance, the world’s largest cryptocurrency exchange, in a decision that has sent shockwaves through global financial and political circles.
The White House confirmed the pardon on Thursday, declaring an end to what it described as the Biden administration’s “war on cryptocurrency”. “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 statement read. “The war on crypto is over.”
Zhao, widely known by his initials CZ, pleaded guilty in late 2023 to failing to maintain an adequate anti‑money laundering programme at Binance. As part of the settlement, the company agreed to pay $4.3bn in penalties, and Zhao stepped down as chief executive. He was sentenced to four months in prison, a term that many critics argued was lenient given the scale of the allegations.
Despite his conviction, Zhao remains one of the wealthiest figures in the technology sector and a towering presence in the digital asset world. Under his leadership, Binance grew into the largest cryptocurrency exchange globally, though it was barred from operating in the United States following his guilty plea.
Trump’s pardon represents a significant victory for Zhao and Binance, following months of speculation and lobbying. It also underscores the administration’s broader shift towards easing scrutiny of the cryptocurrency industry, at a time when Trump and his family are themselves heavily invested in digital assets.
“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 Binance spokesperson said in a statement.
Reports earlier this year suggested that representatives of the Trump family’s crypto venture, World Liberty Financial, had held discussions with Binance about acquiring a stake in its US arm. Zhao, however, denied that any such talks had taken place, insisting that his pardon was not linked to a business arrangement. “Fact: I have had no discussions of a Binance US deal with … well, anyone,” he wrote on X in March. “No felon would mind a pardon.”
Nevertheless, Binance has played a notable role in the growth of World Liberty Financial. Earlier this year, the exchange processed a $2bn transaction from an Emirati investment fund, with the funds paid in a cryptocurrency developed by the Trump family’s firm. The deal was seen as a major step in legitimising the Trump‑backed digital currency and proved highly lucrative for the enterprise.
“We thank MGX and Binance for their trust in us,” Zach Witkoff, founder of World Liberty Financial, said at a Dubai conference in May, where the partnership was announced.
The close ties between Binance and the Trump administration have prompted concern among Democrats. In May, a group of senators led by Elizabeth Warren, the ranking member of the Senate banking committee, issued a statement warning that the administration’s approach risked undermining financial oversight.
“As the Administration loosens oversight on an industry where bad actors have violated money laundering and sanctions law, it is not surprising that Binance, which has admitted to prioritising its own growth and profits over compliance with US law, would seek to roll back the oversight required by its settlement,” the senators wrote.
The Department of Justice had accused Binance of failing to report more than 100,000 suspicious transactions, including some linked to organisations designated as terrorist groups by the United States, such as al‑Qaida and Hamas. The Securities and Exchange Commission also brought a case against the company in 2023, though it was dropped shortly after Trump took office.
The pardon of Zhao is likely to intensify debate over the future of cryptocurrency regulation in the United States. Supporters argue that it signals a new era of innovation and investment, while critics warn that it risks emboldening companies with poor compliance records.
