In a controversial and politically audacious move, U.S. President Donald Trump on Thursday issued a full presidential pardon to Changpeng “CZ” Zhao, the founder and former CEO of Binance, the largest cryptocurrency exchange in the world. At this point, Mr. Zhao’s 2023 felony conviction for engaging in violations of U.S. banking laws with three affiliated crypto exchanges was vacated, and he eventually served four months in federal prison in 2024.
The pardon, first reported by The Wall Street Journal, caps a months-long lobbying effort by Zhao’s team. It sends a powerful signal of the administration’s friendly stance toward the digital asset industry but has also ignited a firestorm of criticism, with opponents pointing to financial links between Binance and a Trump-family crypto enterprise.
A ‘Deeply Grateful’ Zhao Vows to Boost US Crypto
Zhao, who had confirmed in May 2025 that he was seeking a pardon, reacted with gratitude on the social media platform X (formerly Twitter). “Deeply grateful for today’s pardon and to President Trump for upholding America’s commitment to fairness, innovation, and justice,” he posted.
He quickly pivoted to the future, aligning with the administration’s pro-crypto rhetoric. “Will do everything we can to help make America the Capital of Crypto and advance web3 worldwide,” Zhao added. In response, the market reacted immediately, as the native BNB token from Binance rose about 3% in the minutes following the news.
White House: The ‘War on Crypto is Over’
The pardon was framed by the Trump administration as a fundamental repair of the previous administration’s policies. In a forceful statement, White House Press Secretary Karoline Leavitt said Zhao had been “prosecuted by the Biden Administration in their war on cryptocurrency.”
“In their desire to punish the cryptocurrency industry, the Biden Administration pursued Mr. Zhao despite no allegations of fraud or identifiable victims,” Leavitt stated. She also highlighted the prosecution’s original request for a three-year sentence, calling it “so outside Sentencing Guidelines that even the Judge said he had never heard of this in his 30-year career… The Biden Administration’s war on crypto is over.”
President Trump echoed this, telling reporters he pardoned Zhao at the “request of a lot of very good people.” He claimed, “They said that what he did is not even a crime… that he was prosecuted by the Biden administration.”
Reminder: The Crimes CZ Pleaded Guilty To
Regardless of how the administration might spin it, the initial charges were serious. In November 2023, Zhao pled guilty to violating the Bank Secrecy Act by failing to have an effective anti-money laundering (AML) program. Binance, as part of a record $4.3 billion settlement with the government, pled guilty to facilitating illicit financing.
The government’s allegations specified that Binance provided services to users in sanctioned countries and facilitated transactions for illicit actors, including darknet marketplaces. The government court filings in 2023 provided additional details about how Zhao and other executives were allegedly leading U.S. users on “”international circumvention of KYC (Know Your Customer)” to hide their identity and continue trading.”
‘Corruption’: Warren Slams Pardon Over Financial Ties
The pardon drew immediate and harsh condemnation from critics. Senator Elizabeth Warren, a leading Democrat on the Senate Banking Committee, labeled the decision as blatant “corruption.”
“First, Changpeng Zhao pleaded guilty to a criminal money laundering charge. Then he boosted one of Donald Trump’s crypto ventures and lobbied for a pardon. Today, Donald Trump did his part and pardoned him,” Warren stated.
Critics are pointing to a $2 billion investment made into Binance by MGX, an Abu Dhabi firm. That investment was notably made using the USD1 stablecoin, which is operated by World Liberty Financial—a crypto venture linked to the Trump family. This association has resulted in claims of a “pay-to-play” pardon, which the White House denies.
What the Pardon Means for Zhao and Binance
For Zhao, the pardon is a total legal victory. It vacates his felony sentencing or conviction and restores his civil rights and privileges. Zhao can engage in business operations in the United States without the limitations of a criminal history. It also fuels speculation about his potential return to a leadership role at the exchange he founded.
For Binance, the future is still complex. The company remains under the watch of a court-appointed monitor as part of its $4.3 billion plea deal. However, this pardon for its founder is seen by many in the industry as the clearest sign yet that the regulatory pendulum in Washington is swinging firmly in crypto’s favor.
