President Trump Pardons Binance Founder Changpeng Zhao in Controversial Move

Trump Issues Full Pardon for Binance Founder

Former United States President Donald Trump has granted a full pardon to Changpeng Zhao, widely known as 'CZ,' the founder and former CEO of the world's largest cryptocurrency exchange, Binance. The pardon was announced on Thursday, October 23, 2025, and comes after Zhao pleaded guilty to charges related to money laundering in November 2023.

White House spokeswoman Karoline Leavitt confirmed the executive grant of clemency, stating that President Trump exercised his constitutional authority. Leavitt asserted that Zhao was 'prosecuted by the Biden administration in their war on cryptocurrency' and emphasized that there were 'no allegations of fraud or identifiable victims' in Zhao's case. She further claimed that the Biden administration had sought a three-year prison sentence for Zhao, which she described as outside sentencing guidelines.

Background of the Charges and Plea Deal

Changpeng Zhao pleaded guilty in November 2023 to one count of failing to maintain an effective anti-money laundering (AML) program, a violation of the U.S. Bank Secrecy Act. This plea was part of a comprehensive settlement between Binance and U.S. authorities, which saw the cryptocurrency exchange agree to pay a staggering $4.3 billion fine—one of the largest corporate settlements in U.S. history. As part of the agreement, Zhao also paid a personal fine of $50 million and stepped down from his role as CEO.

Prosecutors had alleged that under Zhao's leadership, Binance deliberately prioritized growth over compliance, enabling over 100,000 suspicious transactions to go unreported. These transactions reportedly involved illicit activities such as child sex abuse, drug trafficking, and terrorism. Despite the severity of the charges, a judge noted during sentencing that there was no evidence Zhao personally directed specific criminal activities, characterizing the offense as a compliance failure rather than intentional fraud.

Zhao's Sentence and Release

Following his guilty plea, Zhao was sentenced in April 2024 to four months in prison. He completed his sentence by September 2024. The Department of Justice had initially sought a 36-month sentence, arguing that Zhao 'violated US law on an unprecedented scale.'

Upon receiving the pardon, Zhao took to the social media platform X, expressing his profound gratitude. He wrote, 'Deeply grateful for today's pardon and to President Trump for upholding America's commitment to fairness, innovation, and justice.' Zhao also pledged to 'do everything we can to help make America the Capital of Crypto and advance web3 worldwide.'

Implications and Broader Context

The pardon has ignited discussions about its potential impact on the cryptocurrency industry and regulatory landscape in the United States. Some analysts suggest it could pave the way for Binance to re-establish its presence in the U.S. market, from which it was barred after its 2023 guilty plea.

This clemency for Zhao is part of a series of high-profile pardons issued by former President Trump for individuals convicted of white-collar crimes. Other recent pardons and commutations include former U.S. Rep. George Santos, reality TV stars Julie and Todd Chrisley, former U.S. Rep. Michael Grimm, and Nikola founder Trevor Milton.

Reports have also highlighted connections between Zhao and the Trump family's cryptocurrency venture, World Liberty Financial. This venture, launched by Trump and his sons Eric and Donald Jr., has reportedly generated significant income for the former president. An investment fund in the United Arab Emirates reportedly used USD1, a stablecoin developed by World Liberty Financial, to acquire a stake in Binance.