Trump Pardons CZ: Binance Founder Receives Presidential Clemency
President Donald Trump exercised his constitutional authority by pardoning Binance founder Changpeng Zhao on Wednesday, marking a significant moment for the cryptocurrency sector. On Thursday, the White House confirmed this development through Press Secretary Karoline Leavitt. Zhao, widely known as CZ in the crypto community, pleaded guilty in November 2023 to violating the Bank Secrecy Act. He agreed to step down as CEO, pay a $50 million fine, and serve four months in prison.
The Trump pardon CZ decision arrives after months of speculation about potential clemency. CZ confirmed he asked for a presidential pardon in May 2025, following widespread media coverage of his legal situation. Binance reached a $4.3 billion settlement with the Department of Justice in 2023 as part of coordinated enforcement actions. The exchange faced charges including unlicensed money transmitting, anti-money laundering violations, and sanctions breaches.
White House Defends Trump Pardons CZ Move
The White House stated that Trump pardoned CZ because he was prosecuted by the Biden administration in their “war on cryptocurrency”. Leavitt emphasized that the Biden administration pursued Zhao despite no allegations of fraud or identifiable victims. She criticized the previous administration’s approach to cryptocurrency enforcement. Federal prosecutors originally sought a three-year prison sentence, but the judge sentenced him to only four months.
The White House press secretary highlighted what she characterized as prosecutorial overreach. Leavitt noted that even the judge expressed surprise at the prosecution’s sentencing request during his 30-year career. The statement declared that the Biden administration’s war on crypto has ended.
Trump Pardons CZ Creates Controversy
Senator Elizabeth Warren sharply criticized the presidential clemency. Warren stated that Zhao pleaded guilty to a criminal money laundering charge, then boosted Trump’s crypto ventures and lobbied for a pardon. The Massachusetts senator warned that if Congress does not address this corruption in pending market structure legislation, it owns this lawlessness. Democrats have raised concerns about potential conflicts of interest.
MGX, an Emirati-backed investment firm, agreed to use World Liberty Financial’s dollar-backed stablecoin, USD1, for a $2 billion investment in Binance. This deal represented a significant win for World Liberty Financial, which the Trump family operates. The timing of these business arrangements alongside pardon lobbying efforts has drawn scrutiny from ethics experts.
Crypto Community Celebrates Trump Pardons CZ
BNB, the cryptocurrency closely associated with Binance, surged 15% shortly after the news broke Thursday morning, reaching over $1,150. The market response demonstrated strong investor confidence in the pardon’s implications. A Binance spokesperson thanked President Trump for his leadership and commitment to make the United States the crypto capital of the world. The exchange emphasized CZ’s vision in building the largest cryptocurrency platform globally.
In a post on X, Zhao expressed deep gratitude for the pardon, praising Trump for reaffirming America’s commitment to fairness, innovation, and justice. His statement resonated with crypto advocates who view regulatory enforcement as excessive. The pardon likely provides a path for Binance to operate in the United States after more than a year of lobbying efforts.
Trump Pardons CZ Signals Regulatory Shift
The presidential pardon represents the clearest sign yet that the crypto industry enjoys unprecedented favor under Trump’s administration. Trump, once a crypto skeptic, reversed his stance during his second presidential campaign and pledged to make America the “crypto capital of the planet.” He has also pardoned Ross Ulbricht, who served a life sentence for creating the Silk Road marketplace.
The Trump pardons CZ development suggests a broader shift in cryptocurrency regulation. Industry participants anticipate more favorable treatment under the current administration. However, critics argue that connections between presidential family business interests and clemency decisions raise serious ethical questions that require congressional oversight.
