Changpeng Zhao Receives Full Pardon from US President Trump

US President Donald Trump has granted a full pardon to Binance co-founder Changpeng Zhao, also known as CZ, ending the legal consequences Zhao faced after pleading guilty to money-laundering violations. The initiative removes the federal restrictions that had been placed on Zhao following his 2023 conviction and four-month prison sentence.

The pardon was announced Thursday by White House press secretary Karoline Leavitt, who framed the action as correcting what she called overreach by the Biden administration in its pursuit of cryptocurrency executives.

“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.”

Trump later explained that Zhao’s pardon came at the recommendation of “a lot of people” who believed he was not guilty of wrongdoing.

“A lot of people say that he wasn’t guilty of anything,” Trump said. “And so I gave him a pardon at the request of a lot of very good people.”

Background on Zhao’s Conviction

Changpeng Zhao, a Canadian citizen born in China, founded Binance in 2017 and quickly built it into one of the world’s largest cryptocurrency exchanges. In 2023, federal prosecutors alleged that Zhao had allowed the platform to facilitate money laundering by failing to implement adequate compliance controls.

Court filings revealed that Binance employees had knowingly served users in sanctioned countries and enabled transactions that bypassed U.S. anti-money laundering rules. Zhao himself admitted to shortcomings in Binance’s compliance systems, which allowed some illicit actors, including darknet marketplace users and sanctioned entities, to transact on the platform.

As part of his plea deal, Zhao stepped down as CEO of Binance, paid a $50 million fine, and served four months in federal prison. Binance itself also pleaded guilty and agreed to a court-appointed monitor, along with a $4.3 billion combined fine paid to U.S. authorities.

Implications for Binance and U.S. Operations

The pardon restores Zhao’s ability to conduct business in the United States. It also opens the door for Binance to potentially expand its U.S. operations, challenging domestic exchanges like Coinbase and Kraken.

A Binance spokesperson called the pardon “incredible news” and praised Trump for his support of the cryptocurrency sector. Zhao himself shared on X that he was “deeply grateful for today’s pardon and to President Trump for upholding America’s commitment to fairness, innovation and justice.”

“Will do everything we can to help make America the Capital of Crypto,” Zhao wrote.

Political Context

The pardon comes amid heightened scrutiny of cryptocurrency regulation in the U.S. The move has drawn criticism from some Democrats who see it as politically motivated. Senator Elizabeth Warren described the pardon as part of ongoing corruption concerns, highlighting connections between the Trump family’s crypto ventures and investments in Binance-related platforms.

Other lawmakers, like Senator Ruben Gallego, acknowledged the concern but emphasized that the focus should remain on broader regulatory reforms rather than individual pardons.

“It’s absolutely corrupt what this president is doing, and none of us should be surprised,” Gallego said. “What we’re trying to do in market structure is to keep the Binances of the world outside of the United States market.”

Senator Ben Ray Luján, a pro-crypto Democrat, said he disagreed with the pardon but would continue working on legislation to strengthen U.S. crypto oversight.

Legal and Financial Implications

Zhao’s pardon eliminates any remaining legal liability related to his previous conviction, including restrictions on his role in Binance’s operations. While the pardon does not erase Binance’s fines or its ongoing compliance obligations, it does allow Zhao to resume leadership functions without the constraints imposed by federal law following his conviction.

Zhao’s return could influence Binance’s strategy in the U.S., particularly as the exchange seeks to increase its presence in regulated markets. Analysts note that his leadership and experience are key factors in maintaining Binance’s competitive edge against U.S.-based exchanges.

Zhao’s Role in the Crypto Industry

Despite his conviction, Zhao remains one of the wealthiest figures in cryptocurrency. During his time away from Binance management, he retained the majority of his stake in the company. Analysts suggest that his return to operational control could strengthen Binance’s ability to launch new products, negotiate partnerships, and navigate regulatory frameworks in the United States.

The pardon could also affect ongoing legislative efforts around crypto market structure. Some lawmakers are considering provisions to address potential conflicts of interest in the industry, including the Trump family’s involvement in cryptocurrency ventures. According to Politico, Zhao’s pardon may complicate these negotiations, particularly where bipartisan support is required.

Trump has previously granted clemency to other cryptocurrency figures, including Ross Ulbricht, founder of the Silk Road marketplace, and Arthur Hayes, former CEO of BitMEX. These pardons reflect a broader pattern of easing enforcement actions against major cryptocurrency operators, contrasting with the stricter regulatory approach of the Biden administration.

Conclusion

President Trump’s pardon of Changpeng Zhao effectively clears the path for the Binance founder to resume U.S. operations and management roles. Zhao remains a key figure in the cryptocurrency industry, and the move may enable Binance to expand its regulated presence in the United States. While the decision has drawn political criticism, it also underscores the ongoing tension between crypto innovation and regulatory oversight in American markets.

The pardon does not remove Binance’s compliance obligations or past fines but restores Zhao’s personal freedom and authority over the company he founded in 2017.

Resources:

1. Trump Pardons Convicted Binance Founder - report by WSJ: https://www.wsj.com/finance/currencies/trump-binance-changpeng-zhao-pardon-7509bd63

2. Trump pardons convicted Binance founder Changpeng Zhao - report by CNBC: https://www.cnbc.com/2025/10/23/trump-pardons-binance-founder-cz-zhao.html

3. GOP senator denounces Trump’s pardon of crypto billionaire CZ - report by Politico: https://www.politico.com/live-updates/2025/10/23/congress/gop-senator-denounces-trumps-pardon-of-crypto-billionaire-cz-00620745

4. Trump Pardons Founder of the Crypto Exchange Binance - report by NYT: https://www.nytimes.com/2025/10/23/technology/trump-pardons-cz-binance.html

5. Trump pardons convicted Binance founder 'CZ' Zhao - report by Reuters: https://www.reuters.com/world/us/trump-pardons-convicted-binance-founder-zhao-white-house-says-2025-10-23/