On October 23, 2025, former U.S. President Donald Trump issued a controversial presidential pardon to Changpeng Zhao—better known as CZ—the billionaire founder of Binance, the world’s largest cryptocurrency exchange. The move, which instantly sent shockwaves through the financial and political spheres, has become a lightning rod for debate over corruption, the influence of the crypto industry, and the future of digital asset regulation in the United States.
CZ’s legal troubles began in 2023, when he pleaded guilty to violating U.S. money laundering laws. The charges stemmed from a sprawling investigation by the Department of Justice, which found that Binance had enabled at least 1.1 million illegal transactions worth nearly $900 million between 2018 and 2022. These transactions included dealings with Iranian entities under U.S. sanctions, as well as funds linked to Hydra—a notorious Russian dark-web marketplace—North Korea’s Lazarus Group, and even “Welcome to Video,” a child abuse network. In addition to serving four months in federal prison, Zhao oversaw Binance’s payment of a staggering $4.3 billion fine for its role in global financial malpractice.
Despite the gravity of these offenses, Trump’s decision to grant clemency to Zhao was swift and, to many, mystifying. When pressed for an explanation, Trump offered only that “he was recommended by a lot of people… A lot of people say he wasn’t guilty of anything, and so I gave him a pardon at the request of a lot of very good people.” According to The Spectator World, this vague rationale did little to quell suspicions of impropriety, especially given the complex web of financial interests linking the Trump family and the crypto industry.
Critics from across the political spectrum were quick to denounce the pardon. U.S. Representative Maxine Waters, the ranking member of the House Financial Services Committee, minced no words in her condemnation. “Trump’s pardon of Binance founder Changpeng Zhao—who pleaded guilty to enabling money laundering and facilitating suspicious transactions with child abusers, drug dealers, and terrorists—is an appalling but unsurprising reflection of his presidency: one defined by corruption, self-interest, and loyalty to criminals over working-class American families,” Waters said in a statement quoted by TMZ. She further alleged, “CZ has spent months lobbying Trump and his family while funneling billions into Trump’s personal crypto company, World Liberty Financial. The pardon was the payoff and a blatant example of the kind of pay-to-play corruption that Trump and his Administration continue to engage in.”
The White House, for its part, defended the decision. Press Secretary Karoline Levitt argued that the pardon signaled “an end to the Biden Administration’s war on crypto,” suggesting the move was part of a broader shift toward more crypto-friendly regulation. CZ himself responded with gratitude, posting on X, “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 and advance web3 worldwide.”
The market reaction was immediate and dramatic. According to Odaily Planet Daily, Binance-related assets surged in the hours following the news. The price of BNB, Binance’s native token, soared from around $1,076 to $1,161—a nearly 8% spike—before settling at $1,126, still up 15% over 24 hours. ASTER, a token promoted by CZ, climbed from below $1 to above $1.1, peaking at $1.48 before stabilizing. Meme coins on the Binance platform, such as Binance Life, also saw sharp gains, with one coin leaping from $0.07 to $0.15, a 24-hour increase of more than 34%.
The ripple effects extended beyond digital tokens. Shares of companies linked to the BNB Treasury, like BNB Network Company (BNC), jumped from $7.2 to $8.5 before settling at $7.84, a 6.5% gain. Nano Labs (NA) experienced a similar, if more modest, bump. Even stocks of companies tangentially related to Binance, such as Applied DNA Sciences and China Renaissance Capital, enjoyed minor increases. The Trump family’s own crypto project, World Liberty Financial (WLFI), also benefited handsomely. WLFI’s price shot up over 15% in just 15 minutes, stabilizing above $0.14, while its treasury-listed company ALT5 Sigma saw a 13.44% rise in its stock price.
Industry observers described these developments as a textbook example of the “ripple effect” in financial markets. As Odaily Planet Daily explained, a single high-profile event like CZ’s pardon can trigger a cascade of market reactions, first among directly affected assets, then radiating outward to related tokens, stocks, and projects. The article suggested that savvy investors should map these ripple effects to identify arbitrage opportunities, though it warned of the risks of being “the last ‘good news receiver’” as the initial euphoria fades.
But beneath the surface, deeper questions about justice and influence persist. As The Spectator World detailed, Binance’s plea agreement with the DOJ revealed not just technical violations but a culture of willful noncompliance. Executives allegedly instructed high-value clients to create new accounts with non-U.S. identification to avoid scrutiny, and one compliance officer joked internally, “We need a banner – ‘Is washing drug money too hard these days? Come to Binance, we got cake for you.’”
The timing and context of the pardon have only fueled speculation about the role of money and lobbying in Trump’s decision. During the 2024 election cycle, the crypto industry’s Super PAC Fairshake spent hundreds of millions to support pro-crypto candidates. In parallel, Trump’s administration pardoned other crypto exchange founders, fired SEC chair Gary Gensler, and dropped numerous investigations into crypto industry fraud. Meanwhile, Binance’s business dealings intersected with the Trump family’s interests—most notably through World Liberty Financial, which benefited from a $2 billion investment by the UAE paid in WLFI’s $USD1 stablecoin. This arrangement, as reported by The Spectator World, could net the Trump family project $60-80 million annually in interest.
Even some Trump allies expressed discomfort with the optics. Palantir co-founder Joe Lonsdale remarked that the pardon “makes it look like massive fraud is happening around him in this area.” Former Labor Secretary Robert Reich labeled it “the latest example of Trump’s Pay-to-Pardon scheme.” With speculation swirling about who might be next to receive clemency—Sam Bankman-Fried, the convicted FTX founder, is now seen as a likely candidate—concerns are mounting that justice has become a commodity available to the highest bidder.
For now, the pardon of CZ stands as a flashpoint in the ongoing battle over crypto regulation, political influence, and the integrity of the American justice system. As the ripples continue to spread, both markets and lawmakers are left grappling with the consequences of a decision that, for many, raises more questions than it answers.
