President Donald Trump has granted a full pardon to Changpeng Zhao, the founder of Binance, the world’s largest cryptocurrency exchange, marking a dramatic turn in U.S. crypto regulation. The decision comes less than two years after Zhao pleaded guilty to money laundering failures and was sentenced to four months in prison. The White House framed the move as part of Trump’s plan to end the Biden-era “war on crypto,” sparking both celebration and controversy across the financial world.
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Trump’s Bold Move on Crypto
In a statement released Thursday, the White House confirmed that Trump had exercised his presidential power to pardon Zhao. “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,” the statement read. “The war on crypto is over.”Zhao, known as “CZ” in the crypto community, built Binance into a global powerhouse before facing criminal charges in the U.S. He had admitted in 2023 to failing to implement an effective anti-money laundering program, which led to Binance paying a massive $4.3 billion fine.
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From Conviction to Pardon
After pleading guilty, Zhao resigned as CEO and served a short sentence. His 2023 conviction barred Binance from operating in the U.S. However, Thursday’s pardon has reignited debates about political influence, financial power, and Trump’s growing interest in the digital currency world. The pardon represents a major win for Zhao, who has consistently maintained his dedication to building “transparent and compliant crypto systems.” Trump’s intervention effectively erases Zhao’s criminal record and signals a regulatory shift in Washington’s approach toward cryptocurrency.
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Trump Downplays Zhao’s Offense
Speaking to reporters, Trump brushed aside questions about the seriousness of Zhao’s offense. “Are you talking about the crypto person? A lot of people say that he wasn’t guilty of anything,” he said. “They say what he did was not even a crime. It wasn’t a crime. That he was persecuted by the Biden administration, and so I gave him a pardon at the request of a lot of very good people.” Trump’s comments suggest an attempt to reframe Zhao’s case as political persecution rather than a criminal issue, further fueling partisan divides on financial regulation.
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Binance and Trump Family Ties
Reports have surfaced that representatives from the Trump family’s crypto venture, World Liberty Financial, previously engaged in discussions with Binance about a potential investment in its U.S. branch. Though Zhao denied seeking a pardon through business dealings, critics question the overlap between Trump’s policymaking and his family’s crypto interests.“Fact: I have had no discussions of a Binance US deal with … well, anyone,” Zhao clarified on X in March. “No felon would mind a pardon,” he added.
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Crypto Empire and Political Power
The Trump family’s growing digital finance venture has deepened its relationship with Binance. Earlier this year, a $2 billion payment from an Emirati investment fund was made using World Liberty Financial’s cryptocurrency, a move that validated and enriched the Trump crypto brand.“We thank MGX and Binance for their trust in us,” said Zach Witkoff, founder of World Liberty Financial, at a May conference in Dubai announcing the partnership.
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Political and Legal Backlash
Democratic senators swiftly condemned the pardon, accusing Trump of weakening oversight on a historically risky industry. Senator Elizabeth Warren and other lawmakers warned that Binance’s previous violations, including failure to report over 100,000 suspicious transactions linked to terrorist groups like al-Qaida and Hamas, made the pardon deeply concerning. “As the administration loosens oversight on an industry where bad actors have violated money laundering and sanctions law, it is not surprising that Binance, which has admitted to prioritizing its own growth and profits over compliance with U.S. law, would seek to roll back the oversight required by its settlement,” their statement read.
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A New Era for Cryptocurrency?
Trump’s pardon of Zhao signals a major shift in how the U.S. may approach digital finance under his leadership. With regulatory bodies like the SEC already backing off on enforcement, having dropped a lawsuit against Binance earlier this year, many experts view this as a new era of leniency for crypto giants, raising both optimism and alarm within financial circles.