Former President Donald Trump has officially pardoned Changpeng Zhao, the billionaire founder of Binance, the world’s largest cryptocurrency exchange. The decision marks a dramatic turning point in Washington’s stance toward the crypto industry.
In a statement released Thursday, the White House said the president exercised his constitutional authority to grant Zhao a full pardon.
“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, often known by his initials CZ, had pleaded guilty in November 2023 to one count of failing to maintain an adequate anti-money laundering program.
Following his plea deal, Zhao resigned as CEO of Binance and was sentenced to four months in prison. Binance also agreed to pay $4.3 billion to settle related charges.
Zhao’s conviction was seen at the time as a major blow to the cryptocurrency industry, which had already faced growing regulatory scrutiny in the United States.
Trump’s pardon represents a stunning reversal and a clear signal of support for digital assets as his administration moves to rebrand the United States as a global hub for cryptocurrency innovation.
Binance released a statement celebrating the decision, calling it “an immense victory for both Mr. Zhao and the entire global crypto community.”
“Incredible news of CZ’s pardon today. We thank President Trump for his leadership and for his commitment to make the U.S. the crypto capital of the world,” the company said.
Zhao, who remains one of the wealthiest individuals in the digital currency world, thanked supporters on X, writing, “I am deeply humbled by this act of forgiveness and will continue to support responsible crypto development.”
The pardon follows months of speculation and intense lobbying by industry leaders pushing for more favorable cryptocurrency regulations.
The Daily National News learned that Trump’s move to pardon Zhao had been under discussion for weeks as part of broader efforts to ease tensions between the administration and the digital asset sector.
Trump’s decision also comes as his family’s own crypto venture, World Liberty Financial, expands its global footprint.
Earlier this year, representatives of Trump’s family business reportedly held talks with Binance about a potential partnership with the U.S. arm of the exchange.
According to a report by The Daily National News, Zhao denied any quid pro quo arrangement, writing on X, “Fact: I have had no discussions of a Binance U.S. deal with anyone. No felon would mind a pardon.”
Despite his denials, the connections between Binance and Trump’s growing crypto empire have drawn scrutiny.
In May, Binance accepted a $2 billion transaction from an Emirati investment fund that was paid in a digital token created by World Liberty Financial, the Trump family’s blockchain company.
The move effectively legitimized the Trump family’s cryptocurrency and provided significant financial benefits to their firm.
Zach Witkoff, founder of World Liberty Financial, praised the partnership during a Dubai conference earlier this year.
“We thank MGX and Binance for their trust in us,” Witkoff said. “This is just the beginning of a new era for decentralized finance under visionary leadership.”
Industry experts say Trump’s pardon of Zhao sends a clear message that his administration intends to roll back regulations introduced during the Biden years.
“The pardon of CZ is symbolic,” said Mark Thompson, a blockchain policy analyst interviewed by The Daily National News. “It signals to the crypto world that the U.S. government is reopening the door to innovation and investment.”
Crypto markets reacted positively to the news, with Bitcoin rising more than 8 percent within hours of the announcement. Binance’s native token, BNB, also saw double-digit gains.
While critics argue that Trump’s pardon undermines accountability, supporters say it could revive the United States’ competitiveness in blockchain technology.
Zhao’s legal troubles began when U.S. regulators accused Binance of allowing illicit transactions, including money laundering and sanctions evasion.
Despite paying one of the largest fines in financial history, Binance retained its dominant market share, handling more than half of all global cryptocurrency trades.
With Zhao now officially pardoned, analysts expect Binance to seek re-entry into the U.S. market, which it exited following the 2023 plea deal.
Trump’s latest decision underscores his growing influence in the crypto space, as his administration continues to align itself with blockchain entrepreneurs and digital asset investors.
The pardon is likely to remain one of the most controversial acts of his presidency, but for the crypto industry, it marks the start of a new chapter.
