Trump Pardons Binance Billionaire Changpeng Zhao
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President Donald Trump granted a full pardon to Changpeng Zhao, the founder of Binance, marking an end to the Biden administration’s enforcement actions against the cryptocurrency industry. Changpeng Zhao, commonly known as CZ, received the presidential pardon on October 23, 2025, following months of lobbying efforts.
The pardon wipes away Zhao’s criminal conviction for money laundering violations. White House Press Secretary Karoline Leavitt announced that Trump used his constitutional authority to pardon Changpeng Zhao, stating the Biden administration prosecuted him without fraud allegations or identifiable victims.
Understanding Changpeng Zhao’s Legal Case
Changpeng Zhao pleaded guilty in November 2023 to violating the Bank Secrecy Act. He admitted failing to maintain proper anti-money laundering programs at Binance, the world’s largest cryptocurrency exchange. Federal prosecutors alleged that Binance facilitated illegal transactions worth hundreds of millions of dollars.
The former Binance CEO served four months in prison before his release in September 2024. Judge Richard Jones sentenced him despite prosecutors requesting three years behind bars. Binance agreed to pay over $4.3 billion in fines as part of the settlement agreement.
Binance Settlement Details
The Justice Department investigation revealed serious compliance failures at Binance. Prosecutors claimed the exchange allowed transactions with sanctioned countries including Iran, Russia, Cuba, and Syria. The platform processed approximately 1.1 million prohibited transactions totaling $898 million between 2018 and 2022.
Binance facilitated money movements connected to terrorist organizations, drug traffickers, and criminal networks. The exchange lacked adequate know-your-customer requirements and anti-money-laundering controls. Changpeng Zhao resigned as CEO and paid a $50 million personal fine as part of his plea deal.
Trump’s Crypto-Friendly Approach
The pardon signals a dramatic shift in U.S. cryptocurrency policy. Trump has positioned himself as a champion of the digital asset industry. His administration established the President’s Working Group on Digital Asset Markets to develop comprehensive regulatory frameworks.
The White House declared the Biden administration’s “war on crypto” over with this pardon. Leavitt emphasized that Biden officials pursued Changpeng Zhao despite finding no fraud or victim evidence. She criticized the previous administration for seeking an excessive three-year sentence against Binance‘s founder.
Binance Connection to Trump Family Business
Binance has strong ties to World Liberty Financial, the cryptocurrency venture launched by Trump and his family. Trump’s financial disclosures show he earned over $57 million from World Liberty Financial last year.
The exchange played a key role in supporting World Liberty Financial’s USD1 stablecoin project. An Abu Dhabi investment firm used $2 billion worth of USD1 to purchase a stake in Binance. This connection raised concerns among Democratic lawmakers about potential conflicts of interest.
Changpeng Zhao’s Wealth and Influence
Changpeng Zhao ranks among the world’s richest individuals with an estimated net worth exceeding $85 billion. Forbes and Bloomberg place him as the wealthiest Canadian and the 21st-richest person globally. He owns approximately 90 percent of Binance and controls billions in cryptocurrency tokens.
His fortune increased dramatically since his prison release. Reports indicate his wealth grew by over $20 billion in just one year. The Binance platform remains the dominant cryptocurrency exchange with more than 150 million users worldwide. If you want to take the next step, read our full article Crumbl Expands with 7Brew as Viral TikTok Cookies Take Over Salisbury.
Political Reactions to the Pardon
Senator Elizabeth Warren strongly criticized the pardon decision. She accused Trump of corruption and called attention to the pay-to-pardon pattern. Warren stated that Changpeng Zhao pleaded guilty to criminal money laundering charges before seeking Trump’s favor.
Democratic lawmakers demanded answers about Trump administration dealings with Binance. They questioned whether political and financial motivations influenced the pardon decision. Critics highlighted the billions in penalties and foreign investments involved in the case.
Impact on Cryptocurrency Markets
Binance Coin surged nearly 8 percent following the pardon announcement. The BNB token jumped as markets reacted positively to the news. Industry observers view the pardon as signaling softer U.S. cryptocurrency oversight moving forward.
The decision may allow Binance to resume operations in the United States. The exchange suspended American operations in 2023 as part of the Justice Department settlement. Analysts believe the pardon could pave the way for Binance‘s return to U.S. markets.
Previous Crypto Pardons Under Trump
Trump previously pardoned BitMEX co-founders Arthur Hayes, Benjamin Delo, and Samuel Reed in March 2025. These individuals faced similar Bank Secrecy Act violations related to anti-money laundering failures. The BitMEX pardons demonstrated Trump’s commitment to supporting the cryptocurrency sector.
The administration granted clemency to multiple white-collar defendants in the crypto space. These actions reflect Trump’s campaign promise to make America the “crypto capital” of the world. His executive orders reversed Biden-era policies and established strategic Bitcoin reserves.
Binance Lobbying Efforts
Binance spent nearly a year pursuing the pardon for Changpeng Zhao. The company positioned itself as a major supporter of Trump family cryptocurrency ventures. Reports indicate Binance invested heavily in building relationships with the Trump administration.
Changpeng Zhao publicly requested the pardon in May 2025 after news outlets reported his lobbying campaign. He maintained that no fraud occurred and disputed the severity of his prosecution. The former Binance CEO expressed gratitude after receiving the pardon.
Future of Binance Operations
Changpeng Zhao can now conduct more business operations in the United States following the pardon. The clemency removes his criminal conviction though Binance remains subject to compliance monitoring. Questions remain about whether the company will negotiate to end its external oversight requirements.
Binance continues facing scrutiny from international regulators. French authorities opened money laundering investigations into the exchange in early 2025. The company denies wrongdoing and emphasizes improvements to its anti-money-laundering programs.
