President Trump Pardons Binance Founder CZ in Major Crypto Industry Shake-Up
U.S. President Donald Trump has granted a presidential pardon to Changpeng Zhao (CZ), the billionaire founder of Binance, the world’s largest cryptocurrency exchange. The decision, confirmed by the White House on Thursday, marks one of the most controversial moves of Trump’s administration and has sent shockwaves through global crypto markets.
Background of the Case
Zhao, who served a brief prison sentence in the U.S., pleaded guilty in 2024 to failing to implement anti-money-laundering (AML) controls on the Binance platform. Regulators accused Binance of facilitating illegal financial flows tied to child exploitation, drug trafficking, and terrorism financing.
Despite his conviction, Zhao’s case gained public sympathy after he expressed deep remorse during his sentencing, stating:
“I failed here. I deeply regret my failure, and I am sorry.”
Following his release from a California correctional facility, Zhao paid a $50 million fine, while Binance settled for $4.3 billion to resolve U.S. compliance and sanctions violations. He later stepped down as CEO, with Richard Teng taking over leadership.
Trump’s Pardon and Its Political Implications
Trump’s decision to pardon Zhao comes amid his growing ties to the cryptocurrency industry, particularly through his new venture, World Liberty Financial, launched in September 2025 with his sons, Donald Jr. and Eric Trump.
According to official filings, the president earned over $57 million in 2024 from the company, which recently introduced a stablecoin named “$1”, pegged to the U.S. dollar. Market analysts view the pardon as part of Trump’s strategy to align his administration with the digital asset community.
In a related move, a UAE-based investment fund reportedly plans to use $2 billion worth of “$1” tokens to acquire a stake in Binance — a deal allegedly brokered shortly before Zhao’s pardon.
White House Justifies Decision
White House Press Secretary Karoline Leavitt defended the pardon, saying Zhao’s prosecution under the previous administration was “politically motivated” and that there were “no allegations of fraud or identifiable victims.”
She added that the president’s decision is part of Trump’s commitment to “restore fairness and support innovation” in the financial technology sector.
Market Reaction and Industry Impact
Following the announcement, Binance Coin (BNB) and Bitcoin (BTC) recorded modest intraday gains, reflecting improved investor confidence. Analysts believe the pardon could signal a softer regulatory stance toward cryptocurrency operators in the United States.
However, critics warn the move could set a risky precedent, potentially emboldening non-compliant crypto firms and undermining ongoing global regulatory efforts.
What Comes Next
While Zhao has ruled out returning as Binance CEO, his influence in the crypto space remains strong. Observers predict renewed collaboration between U.S. blockchain companies and pro-crypto policymakers under Trump’s administration.
The pardon not only reshapes perceptions of financial accountability but also underscores the increasing intersection between politics, digital assets, and global finance.
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