WASHINGTON, D.C. — In a controversial move that has ignited a political firestorm, President Donald Trump on Thursday granted a full and unconditional pardon to Changpeng "CZ" Zhao, the billionaire founder and former CEO of Binance, the world's largest cryptocurrency exchange. The decision effectively clears Zhao's criminal record less than two years after his conviction for violating federal anti-money-laundering laws, signaling a dramatic shift in the U.S. government's stance toward the digital asset industry.
Zhao, a Chinese-born Canadian citizen, pleaded guilty in November 2023 to one felony count of failing to maintain an effective anti-money-laundering program at Binance, a violation of the Bank Secrecy Act. As part of a landmark $4.3 billion settlement between the exchange and the U.S. Department of Justice, Zhao resigned as CEO and served a four-month prison sentence in 2024.
White House Justifies Clemency, Declares "War on Crypto" Over
The White House immediately defended the pardon, framing the original prosecution as political overreach. In an official statement, White House Press Secretary Karoline Leavitt accused the previous administration of engaging in a "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," Leavitt stated. "The Biden Administration's war on crypto is over." She emphasized that the case involved "no allegations of fraud or identifiable victims."
Echoing this sentiment, President Trump personally downplayed the severity of Zhao's crimes. "A lot of people say that he wasn't guilty of anything... what he did is not even a crime," Trump told reporters. "I gave him a pardon at the request of a lot of very good people."
Controversy Erupts Over Business Ties and Lobbying
The pardon triggered immediate accusations of a conflict of interest, with critics pointing to deep financial and political connections between Zhao and the Trump family.
The controversy stems from Binance's role as a reported "key supporter" of the Trump family's multibillion-dollar crypto venture, World Liberty Financial. Earlier this year, an investment fund announced a massive $2 billion stake purchase in Binance using the USD1 stablecoin, which is closely connected to World Liberty Financial. Furthermore, reports indicate that Zhao's team engaged in a months-long lobbying campaign for the pardon, hiring lobbyists with close ties to the Trump inner circle.
Democratic Senator Elizabeth Warren was quick to condemn the action. "This isn't justice; it's corruption," she stated, alleging the pardon directly followed Zhao's efforts to boost one of the President's own crypto ventures.
Industry Impact and Zhao's Future
Following the announcement, Zhao expressed his gratitude on social media, stating he was "Deeply grateful for today's pardon and to President Trump for upholding America's commitment to fairness, innovation, and justice." He vowed to "help make America the Capital of Crypto and advance web3 worldwide."
The pardon is widely seen as the most powerful demonstration yet of the Trump administration's pro-crypto stance. The financial markets reacted instantly, with cryptocurrencies associated with both Binance and the Trump family seeing notable price surges.
For Zhao, who remains the majority shareholder of Binance, the pardon removes legal barriers to travel and a more active role in the industry. While a return as CEO is unlikely, the move potentially opens the door for his influential guidance and could pave the way for Binance's re-entry into the lucrative U.S. market, cementing a new, permissive era for cryptocurrency under the Trump administration.
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