Move Signals Pro-Crypto Pivot, Fulfilling Campaign Promises to Bolster Industry

October 23, 2025 | Washington, D.C. - In a bold affirmation of his administration's pro-cryptocurrency stance, President Donald Trump has issued a full pardon to Changpeng Zhao, the billionaire founder of Binance, the world's largest cryptocurrency exchange by trading volume. The decision, announced Thursday by the White House, comes less than two years after Zhao's guilty plea in a high-profile money laundering case and underscores Trump's efforts to dismantle what he has called the previous administration's "war on crypto."

Zhao, widely known as "CZ" in the crypto world, expressed profound gratitude on social media platform X shortly after the announcement. "Deeply grateful for today’s pardon and to President Trump for upholding America’s commitment to fairness, innovation, and justice," Zhao posted. "Will do everything we can to help make America the Capital of Crypto." The pardon erases Zhao's federal conviction, potentially clearing the path for his return to active leadership at Binance and signaling a seismic shift in U.S. regulatory attitudes toward digital assets.

Background of the Case and Swift Clemency

Zhao, a Canadian citizen of Chinese origin, co-founded Binance in 2017, transforming it into a global powerhouse that dominates crypto trading with billions in daily volume. However, the exchange's rapid growth drew scrutiny from U.S. regulators. In November 2023, Binance pleaded guilty to violating anti-money laundering laws, agreeing to pay a staggering $4.3 billion in penalties—the largest corporate settlement in U.S. history for such violations. Zhao stepped down as CEO, paid a personal $50 million fine, and pleaded guilty to one count of failing to maintain an effective anti-money laundering program.

Sentenced to four months in a low-security federal prison in California, Zhao was released in September 2024 after serving less than half his term due to good behavior. Despite his legal troubles, he retained significant influence over Binance, with a trusted appointee taking the helm as CEO. In May 2025, Zhao publicly revealed he had applied for a pardon from the Trump administration, though he emphasized he had never personally spoken with the president.

The U.S. Constitution grants presidents sweeping clemency powers, allowing pardons for federal offenses without needing justification or waiting until the end of a term. Trump's action on Zhao fits a pattern of crypto-focused leniency since taking office in January 2025, including pardons for the co-founders of BitMEX in March for similar anti-money laundering lapses and the January commutation of Ross Ulbricht's life sentence—the Silk Road creator revered as a martyr in libertarian crypto circles.

White House Rationale: Ending the 'War on Crypto'

White House Press Secretary Karoline Leavitt framed the pardon as a direct rebuke to the Biden-era Justice Department. "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," Leavitt said in a statement. The move aligns with Trump's 2024 campaign pledges to foster crypto innovation, reverse stringent regulations, and position the U.S. as a global hub for digital finance. During the election, Trump courted the industry with appearances at crypto conferences and promises to fire SEC Chair Gary Gensler, whom he labeled an "enemy of progress."

Critics, including consumer advocates and Democratic lawmakers, decried the pardon as favoritism toward wealthy donors. "This is pay-to-play politics at its worst," said Sen. Elizabeth Warren (D-Mass.), who has long pushed for tougher crypto oversight. "Zhao's conviction wasn't a 'war'—it was accountability for enabling billions in illicit transactions." Binance, which has faced ongoing lawsuits from the SEC and CFTC, declined immediate comment on the pardon.

Broader Implications for Crypto and Beyond

The pardon arrives amid a crypto market resurgence, with Bitcoin surpassing $100,000 per coin this week on optimism over deregulation. Analysts suggest it could embolden Binance's U.S. expansion, where the exchange has been sidelined by compliance hurdles. "This isn't just about CZ—it's a green light for the entire industry," said crypto analyst Nic Carter of Castle Island Ventures. "Expect more listings, more innovation, and less fear of federal crackdowns."

Trump's clemency spree extends beyond crypto, encompassing pardons for figures like the founder of electric truck maker Nikola on fraud charges and a commutation for an Ozy Media executive. Yet the Zhao decision stands out for its symbolic weight, reinforcing ties between the administration and crypto heavyweights who donated millions to Trump's reelection bid.

As the dust settles, Zhao's next moves remain unclear, but his pledge to aid America's crypto ambitions hints at a potential advisory role or deeper involvement in policy shaping. For now, the pardon marks a pivotal moment: the dawn of a new era where digital dollars may flow freer under the Stars and Stripes.