Trump Pardons Binance Founder Changpeng Zhao in Landmark Pro-Crypto Move
A Political Earthquake Shakes the Crypto World
In a move that has sent shockwaves through the global financial and technology sectors, President Donald Trump has issued a full pardon for Changpeng Zhao, the billionaire founder and former CEO of Binance, the world’s largest cryptocurrency exchange. The decision marks a pivotal moment in the relationship between the US government and the digital asset industry, signaling a dramatic policy shift from the previous administration.
The announcement confirms the administration’s clear intent to end what it has termed a ‘war on crypto’. This development comes after a tumultuous year for the Binance founder, widely known as “CZ,” who pleaded guilty to violating U.S. money laundering laws. The news that
The White House Declares the “War on Crypto is Over”
The pardon was announced by White House Press Secretary Karoline Leavitt, who framed Zhao’s prosecution as a politically motivated attack by the Biden administration. Leavitt argued that CZ had been unfairly targeted, emphasizing that the case involved “no allegations of fraud or identifiable victim.”
“The Biden Administration’s war on crypto is over,” Leavitt declared in a press briefing. She criticized the previous Justice Department’s push for a three-year prison sentence, stating that the effort had “severely damaged the United States’ reputation” as a center for financial innovation.
This pardon is the cornerstone of the Trump administration’s broader strategy to reposition the United States as a global leader in the digital economy. President Trump has repeatedly vowed to make the U.S. the “crypto capital” of the world, a promise he has backed with several high-profile initiatives since taking office.
A Look Back at the Binance Case
To understand the full impact of this pardon, it’s essential to recall the case against Zhao and Binance. In November 2023, Zhao stepped down as CEO as part of a sweeping settlement with U.S. authorities. He personally pleaded guilty to failing to maintain an effective anti-money laundering (AML) program.
Binance, the company he founded, was ordered to pay a staggering $4.3 billion in fines and penalties. U.S. officials at the time, including then-Treasury Secretary Janet Yellen, accused the exchange of “wilful failures” that allowed illicit actors to use the platform.
“Binance turned a blind eye to its legal obligations in the pursuit of profit,” Yellen stated in 2023. “Its wilful failures allowed money to flow to terrorists, cybercriminals, and child abusers through its platform.”
Despite prosecutors’ requests for a multi-year sentence, Zhao was sentenced to just four months in a minimum-security prison in April 2024, a term he completed in September 2024. Even after his release, the conviction remained a significant stain on his record—until now.
The Path to the Pardon
According to reports from The Wall Street Journal, the campaign for a presidential pardon was a concerted, year-long effort by Binance. The company reportedly leveraged significant resources to make its case in Washington. The reports also noted that representatives of the Trump family’s crypto firm, World Liberty Financial, had recently held discussions with Binance, suggesting a dialogue was open at the highest levels.
Implications for the Crypto Industry
The pardon of Changpeng Zhao is more than just a personal victory for the former CEO; it’s a symbolic green light for the entire crypto industry in the United States. Here’s what it could mean:
- A Friendlier Regulatory Environment: The move signals a departure from the enforcement-heavy approach of the past, potentially leading to more collaborative and growth-oriented regulations.
- Increased Investment and Innovation: With the perceived threat of a federal crackdown diminished, more capital and talent may flow into the U.S. crypto space.
- A Clean Slate for Binance: The pardon helps Binance move past its legacy legal issues, potentially opening doors for the exchange to re-engage with the U.S. market more directly.
As the Trump administration continues to roll out its pro-crypto policies, including the establishment of a national cryptocurrency reserve and simplifying crypto investments for retirement accounts, this pardon will be remembered as the moment the tide officially turned for digital assets in America.
