US President Donald Trump Pardons Changpeng Zhao, Founder of Binance

I. Background of the Pardon

US President Donald Trump has granted a pardon to Changpeng Zhao, the founder of Binance, the world’s largest cryptocurrency exchange. In November 2023, Zhao, commonly known as CZ, pleaded guilty to violations of anti – money – laundering laws and US sanctions. This plea was part of an extensive agreement with the US Department of Justice (DOJ), under which Binance was obligated to pay a record – breaking penalty of $4.3 billion.

II. Imprisonment Details

Zhao served a four – month term in federal prison. Initially, the DOJ had petitioned for a three – year prison sentence.

III. White House’s Narrative

Following the pardon, the White House has characterized Zhao as the victim of a scheme by the administration of former President Joe Biden to undermine the cryptocurrency industry. During Biden’s tenure, regulators launched a series of lawsuits against prominent cryptocurrency – related businesses, and the DOJ prosecuted key figures in the industry for fraud. White House Press Secretary Karoline Leavitt stated, “In their eagerness to penalize the cryptocurrency industry, the Biden administration targeted Mr. Zhao despite the absence of fraud allegations or identifiable victims. The Biden administration’s war on crypto has ended.”

IV. Zhao’s Standing in the Crypto World

Zhao, who founded Binance in 2017, is regarded as something of a legend in the cryptocurrency community. He was known for his bullish statements and proficiency in using social media. Before his guilty plea, he regularly utilized his X (formerly Twitter) platform to refute allegations of misconduct at Binance.

V. Precedent of Trump’s Pardons in Crypto

Zhao is the latest in a line of cryptocurrency figureheads to be pardoned by Trump. The president has received endorsements and millions of dollars in donations from members of the cryptocurrency industry. Shortly after returning to office, Trump commuted the prison sentence of Ross Ulbricht, the creator of the darknet marketplace Silk Road. In late March, Trump pardoned the co – founders of the cryptocurrency exchange BitMEX, who in 2022 pleaded guilty to charges related to their failure to maintain an adequate anti – money – laundering program.

VI. Implications of the Pardon

Although Zhao has already completed his prison term, the pardon will expunge the anti – money – laundering and sanctions violations from his criminal record. Patrick Hillmann, who previously served as Chief Strategy Officer at Binance under Zhao, opined, “For him, I believe this is truly about clearing his name. I think this provides a sense of closure for him.”

The pardon may also pave the way for Binance to re – enter the US market, which it was compelled to exit as a condition of the DOJ settlement. As previously reported by The Wall Street Journal, Binance had spent months advocating for a pardon for Zhao, who was released from prison in September 2024. However, in January, Richard Teng, who succeeded Zhao as Binance CEO, downplayed the company’s aspirations to return to the US after Trump’s return to the White House in an interview with WIRED, stating, “The US is not our current focus.”

VII. Criticisms of the Pardon

Critics have interpreted Zhao’s pardon as a quid pro quo for assisting the Trump family in their forays into the cryptocurrency sector. In May, Binance agreed to accept a $2 billion investment denominated in USD1, a stablecoin issued by World Liberty Financial, a crypto business co – founded by the Trump family. This deal could potentially yield tens of millions of dollars for World Liberty Financial.

Elizabeth Warren, a senator from Massachusetts, remarked in a statement to WIRED, “First, Changpeng Zhao pleaded guilty to a criminal money – laundering charge. Then he promoted one of Donald Trump’s crypto ventures and lobbied for a pardon. If Congress does not halt this type of corruption in the pending market structure legislation, it will be accountable for this lawlessness.” (Reportedly, through his lawyer, Zhao has demanded that Warren retract a similar statement she posted on X, as he did not plead guilty to a “money – laundering” charge. Instead, his plea was related to a failure “to maintain an effective anti – money – laundering program”, which violates the Bank Secrecy Act.)

Update: 10/29/2025, 5:20 PM EDT: WIRED has incorporated several post – publication details regarding Zhao’s reported response to Warren’s comments.