U.S. President Donald Trump has granted a presidential pardon to Changpeng Zhao (CZ), the billionaire founder of Binance, the world’s largest cryptocurrency exchange.
Gatekeepers News reports that the White House confirmed the pardon on Thursday, ending months of speculation following Zhao’s public appeal for clemency. The decision comes amid growing scrutiny of Trump’s ties to the cryptocurrency industry through his new venture, World Liberty Financial, launched in September with his sons, Donald Trump Jr. and Eric Trump.
Zhao had earlier served a four-month prison sentence after pleading guilty to failing to implement adequate anti–money laundering controls on the Binance platform. U.S. prosecutors accused the exchange of facilitating illicit transactions linked to child exploitation, drug trafficking, and terrorism.
White House Press Secretary Karoline Leavitt defended the pardon, saying Zhao’s prosecution under the Biden administration was politically motivated.
“There were no allegations of fraud or identifiable victims,” Leavitt said. “This administration believes that Zhao’s case reflected a desire to punish the cryptocurrency industry rather than uphold justice. The President’s decision is part of his broader effort to restore fairness in financial innovation.”
Trump’s World Liberty Financial venture has drawn attention for its growing influence in the digital finance sector. According to Trump’s 2024 financial disclosure, he earned more than $57 million from the company last year. The firm recently introduced $1, a U.S. dollar–pegged stablecoin marketed as a conservative alternative to what Trump has called “politicized global finance.”
In a move seen as strategically aligned with the pardon, a UAE-based investment fund announced plans to use $2 billion worth of $1 tokens to acquire a stake in Binance — a deal reportedly finalized shortly before Zhao’s release.
Zhao, 47, who built Binance into a global crypto powerhouse before stepping down as CEO in 2024, had expressed remorse during his sentencing hearing.
“I failed here. I deeply regret my failure, and I am sorry,” Zhao told the court.
Following the pardon, market sentiment turned positive, with Binance Coin (BNB) and Bitcoin recording modest gains in intraday trading. Analysts said the decision could signal a more lenient U.S. regulatory approach toward crypto operators under the Trump administration, though critics warned it may embolden bad actors within the industry.
Zhao had returned voluntarily from Dubai to face the U.S. charges, serving his sentence at a low-security facility in Long Beach, California. He was released two days early under standard weekend-release procedures.
As part of a 2024 settlement with the U.S. government, Zhao paid a $50 million personal fine, while Binance agreed to a $4.3 billion penalty to resolve allegations of sanctions and compliance violations.
Zhao has since stated that he has “no intention” of returning as Binance CEO, with Richard Teng continuing to lead the company.
