President Donald Trump has granted a pardon to Changpeng Zhao, the founder of the cryptocurrency exchange Binance, who was convicted of money laundering violations. This move has ignited controversy over the administration’s relationship with the crypto industry and allegations of conflicts of interest.
The White House announced the pardon on October 23, 2025, with Press Secretary Karoline Leavitt stating that it corrected an “overreach” by the Biden administration in its “war on cryptocurrency.” Trump later commented that he pardoned Zhao at the request of “a lot of very good people,” though he appeared unfamiliar with Zhao when asked. The decision came after months of lobbying efforts by Binance, including hiring a firm connected to Trump’s son, which raised ethical concerns.
Changpeng Zhao, widely known as CZ, pleaded guilty in November 2023 to failing to implement an effective anti-money laundering program at Binance, as part of a $4.3 billion settlement with the U.S. Department of Justice. He stepped down as CEO and was sentenced to four months in prison in April 2024, a term far shorter than the three years federal prosecutors had sought. The case highlighted Binance’s role in enabling illicit financial activities, with officials noting it allowed money to flow to terrorists and cybercriminals.
Binance expressed gratitude for the pardon, with Zhao posting on social media that he was “deeply grateful” and committed to helping make America the “capital of crypto.” The company, which remains the world’s largest cryptocurrency exchange, praised Trump’s leadership and vision for the industry. However, the pardon lifts legal restrictions on Zhao, potentially allowing him to re-engage in financial ventures, though it is unclear if he will return to a leadership role at Binance.
Critics, including Senator Elizabeth Warren, denounced the decision as “corruption,” pointing to Trump family investments in crypto ventures that have benefited from partnerships with Binance. Warren warned that without congressional action, such moves could perpetuate lawlessness in financial markets. Other observers, like Palantir co-founder Joe Lonsdale, expressed concern that the pardon creates an appearance of fraud around Trump’s crypto interests.
The pardon aligns with Trump’s broader pro-crypto policies, which include loosening regulations, establishing a national cryptocurrency reserve, and promoting digital assets since taking office. His administration has previously shown leniency to other crypto figures, such as BitMex founders and Silk Road’s Ross Ulbricht, signaling a shift from the previous administration’s stricter enforcement stance. This approach has deepened the Trump family’s ties to the industry, with their own crypto ventures reportedly worth billions.
Looking ahead, the event underscores the ongoing tension between innovation and regulation in the rapidly evolving cryptocurrency landscape. It may influence future legislative efforts and regulatory frameworks, as lawmakers grapple with balancing technological advancement against financial security. The pardon also sets a precedent for how presidential powers are exercised in high-profile corporate cases, with potential implications for accountability and justice in the digital economy.