On October 23, 2025, President Donald Trump granted a high-profile pardon to Changpeng Zhao, the billionaire founder of Binance, marking a dramatic turn in the United States’ approach to cryptocurrency regulation and enforcement. The decision, announced by White House press secretary Karoline Leavitt, instantly ignited debate across political, financial, and tech circles, with supporters hailing it as a victory for innovation and critics decrying it as a blow to the rule of law.
Zhao, better known in the crypto world as CZ, is no stranger to headlines. Since founding Binance in 2017, he has built it into the world’s largest cryptocurrency exchange, at times handling up to two-thirds of all global digital currency transactions, according to Reuters and The New York Times. His personal fortune is estimated at $85 to $87.2 billion, placing him 21st on Forbes’ Real-Time Billionaires list.
But Zhao’s meteoric rise has not been without controversy. In November 2023, he and Binance pleaded guilty to failing to maintain an effective anti-money laundering program, a charge that federal prosecutors said allowed criminals—including those involved in child sex abuse, drug trafficking, and terrorism—to move illicit funds through the platform. The U.S. Department of Justice described Binance as a “central hub for terrorists, hackers and human traffickers seeking to move their money.” As part of a sweeping $4.3 billion settlement, Zhao stepped down as CEO, paid a $50 million fine, and was sentenced to four months in federal prison—a sentence that some observers noted was lighter than the three years prosecutors had sought.
“I failed here,” Zhao told the court at the time. “I deeply regret my failure, and I am sorry.” He served his sentence in 2024 and was released in September of that year. Despite stepping down, Zhao remained the majority owner of Binance and continued to command a loyal following in the crypto community.
The road to the pardon was paved with months of lobbying and political maneuvering. Zhao assembled a team of lawyers and lobbyists with close ties to the Trump administration, including former SEC lawyer Teresa Goody Guillén and longtime Trump family associate Ches McDowell, as reported by The Wall Street Journal and Politico. At the same time, Binance struck a significant business deal with World Liberty Financial, a crypto venture launched by Trump and his sons Eric and Donald Jr. The partnership involved a $2 billion investment in Binance using USD1, a stablecoin pegged to the U.S. dollar, and is expected to generate tens of millions of dollars annually for the Trump and Witkoff families.
Trump’s own financial disclosure revealed over $57 million in earnings from World Liberty Financial in 2024. The deepening ties between the Trump family and the crypto industry did not go unnoticed by lawmakers. Senator Elizabeth Warren, a frequent critic of both Trump and the crypto sector, called the pardon “further evidence of the need for anti-corruption rules from Congress,” urging swift passage of legislation to impose stricter ethics guardrails on digital assets.
Announcing the pardon, White House press secretary Karoline Leavitt declared, “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.” She continued, “In their desire to punish the cryptocurrency industry, the Biden administration pursued Mr. Zhao despite no allegations of fraud or identifiable victims. The Biden administration’s war on crypto is over.”
Leavitt’s remarks reflected a broader shift in Washington’s attitude toward digital assets since Trump’s inauguration. Under his administration, regulators have walked away from several high-profile lawsuits and investigations against crypto firms, including Binance. Trump has also granted clemency to other prominent crypto executives, such as Ross Ulbricht, the creator of the Silk Road marketplace, and has reportedly considered a pardon for FTX founder Sam Bankman-Fried.
The response from Zhao was swift and effusive. In a post on X, he wrote, “I am 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.” A Binance spokesperson echoed the sentiment, calling the pardon “incredible news” and praising Trump’s “leadership and commitment to make the U.S. the crypto capital of the world.”
Yet the pardon was not universally celebrated. Critics on both sides of the political spectrum voiced concerns about the implications for the rule of law and the integrity of U.S. financial markets. Eswar Prasad, an economics professor at Cornell University, told The New York Times, “This is yet another example of the administration’s brazen flouting of the rule of law. There is little justification for this pardon and it highlights how far this administration will go to promote the cryptocurrency industry.”
Some Republican allies, such as Senator Cynthia Lummis, acknowledged the president’s constitutional discretion in issuing pardons but reiterated concerns about Binance’s past ties to groups like Hamas. Meanwhile, far-right influencer Laura Loomer criticized Zhao’s Emirati citizenship, suggesting on social media that “people who are trying to evade punishment for crimes” seek such status. Zhao replied, “Many top U.S. entrepreneurs get U.A.E. citizenships. I implore you to visit some time.”
The pardon could have far-reaching consequences for Binance and the broader crypto market. With the legal cloud lifted, Zhao may now be able to retake direct control of Binance and push for a stronger U.S. presence, challenging domestic exchanges such as Coinbase and Kraken. Industry insiders speculate that the move could also embolden other crypto executives facing legal scrutiny, especially as regulators appear to be pulling back from aggressive enforcement.
Binance’s influence remains formidable. The platform continues to process enormous volumes of digital assets, and Zhao’s vision has shaped the direction of the entire crypto movement. His ability to weather regulatory storms—and now secure a presidential pardon—has only cemented his status as one of the most powerful figures in the industry.
As the dust settles, the debate over Zhao’s pardon is likely to persist. For some, it’s a symbol of America’s renewed embrace of technological innovation and entrepreneurial risk-taking. For others, it’s a troubling sign of special interests and blurred ethical lines at the highest levels of government. One thing is certain: the saga of Changpeng Zhao, Binance, and the U.S. crypto crackdown is far from over.
