In a controversial move that has sent shockwaves through the financial and political worlds, President Donald Trump has pardoned Changpeng Zhao, the founder of the world’s largest cryptocurrency exchange, Binance, according to The Wall Street Journal.
The decision follows months of behind-the-scenes lobbying by Binance executives and Zhao himself, who reportedly played a key role in supporting the Trump family’s burgeoning crypto venture, World Liberty Financial.
Background: From Conviction to Clemency
Zhao, widely known in the crypto community as “CZ,” was sentenced in April 2024 to four months in prison after pleading guilty to failing to implement adequate anti–money laundering controls at Binance.
As part of a sweeping Department of Justice (DOJ) settlement under the Biden administration, Binance was fined $4.3 billion—one of the largest corporate penalties in U.S. history.
Federal prosecutors accused the exchange of becoming a global hub for criminal money laundering, handling “billions of dollars” in unregulated crypto transactions, including nearly $900 million in illicit transfers between the U.S. and Iran.
Trump’s Shift Toward Crypto
Since returning to the White House, President Trump has taken a markedly different approach to cryptocurrency regulation. His administration has reversed several of the Biden-era policies that sought to tighten oversight of digital assets.
In May 2025, the Securities and Exchange Commission (SEC) dropped its lawsuit against Binance, signaling a friendlier stance toward the industry. With Zhao’s pardon, Binance could soon resume operations in the U.S. and end the DOJ’s compliance monitoring—though the Treasury Department’s oversight program reportedly remains active.
White House Justification and Reaction
White House Press Secretary Karoline Leavitt defended the pardon, stating that President Trump had “exercised his constitutional authority” to end what she described as “the Biden Administration’s war on cryptocurrency.”
“The Biden Administration’s war on crypto is over,” Leavitt said in a statement to The Wall Street Journal.
When asked by reporters about Zhao later in the day, however, Trump appeared unsure of who he had pardoned. “I do pardon a lot of people,” he said. “A lot of people said he wasn’t guilty of anything.” He then turned on the reporter, calling her “fake news.”
A Pattern of Tech Pardons
Zhao’s pardon is the latest in a growing list of clemency grants for prominent figures in the tech and crypto sectors. Earlier this year, Trump pardoned Ross Ulbricht, founder of the dark web marketplace Silk Road; Trevor Milton, the disgraced former CEO of Nikola; and BitMEX cofounders Arthur Hayes, Benjamin Delo, and Samuel Reed.
The trend reflects Trump’s evolving relationship with Silicon Valley and digital finance. Once a vocal critic of cryptocurrency—calling Bitcoin a “scam” in 2021—Trump has since embraced the industry, particularly as his family’s venture World Liberty Financial gains traction among crypto investors.
Ethical and Political Questions
Reports have emerged that Zhao held private talks with members of the Trump family about a potential financial partnership between Binance and World Liberty Financial. According to The Wall Street Journal, a stake in Binance might even have been contingent upon the pardon, raising questions about potential conflicts of interest and abuse of executive power.
Critics argue the pardon undermines the rule of law and signals that financial influence can purchase political favor. As one analyst told Reuters, “It’s a message that if you’re rich enough—or connected enough—you can buy your way out of accountability.”
The Road Ahead for Binance
Despite the pardon, Binance still faces global scrutiny, with regulators in Europe and Asia examining its compliance record. Yet Zhao’s freedom and Trump’s support could mark a new era for Binance’s return to the U.S. market.
As Zhao regains his footing in the crypto industry, observers warn that the political alignment between powerful tech entrepreneurs and the Trump administration could reshape the future of digital finance—and the boundaries of presidential power.
COLLINS: Today you pardoned the founded of Binance. Can you explain why you did that? TRUMP: Which one was that?COLLINS: The founder of BinanceTRUMP: I believe we're talking about the same person, because I do pardon a lot of people. I don't know. He was recommended by a lot of people.
