U.S. President Donald Trump has officially pardoned Changpeng “CZ” Zhao, the founder and former CEO of Binance. The move, first reported by The Wall Street Journal, brings an end to one of the most closely watched legal battles in the crypto industry.
Zhao, a Chinese-born Canadian entrepreneur, had pleaded guilty in November 2023 to failing to maintain an effective anti-money-laundering (AML) programme at Binance, a violation of the U.S. Bank Secrecy Act. The plea followed a multi-year probe by the Department of Justice (DOJ) and other regulators into Binance’s compliance failures and its alleged facilitation of unlawful transactions.
Trump reportedly signed the presidential pardon on 22 October 2025, following months of lobbying by Zhao and his family. According to sources cited by WSJ, the decision reflects Trump’s broader attempt to reset U.S. policy toward the cryptocurrency sector, one he claims was “targeted unfairly” under the Biden administration.
White House Defends the Decision
White House Press Secretary Karoline Leavitt confirmed the pardon on Thursday, defending it as a step toward restoring fairness in the U.S. crypto regulatory environment.
“President Trump exercised his constitutional authority by issuing a pardon for Mr Zhao, who was prosecuted by the Biden Administration in their war on cryptocurrency,” Leavitt said in an official statement.
She went on to criticise the prior administration’s aggressive pursuit of Zhao, calling it politically motivated and detrimental to innovation.
“In their desire to punish the cryptocurrency industry, the Biden Administration pursued Mr Zhao despite no allegations of fraud or identifiable victims,” she added.
The White House statement also noted that prosecutors under the Biden-era DOJ had requested a three-year prison sentence for Zhao, a recommendation the presiding judge described as “extraordinary” and beyond the usual sentencing norms.
Zhao ultimately served four months in federal prison, completing his sentence in September 2024 before returning to Dubai, where he has maintained a low profile since stepping down as Binance CEO.
From Regulatory Crackdown to Presidential Pardon
Binance’s legal troubles began in 2020 when U.S. regulators alleged that the exchange had violated registration and securities laws by offering unapproved investment products. The company faced mounting restrictions in major markets such as the United Kingdom, Germany and Japan, leading to a gradual retreat from several jurisdictions.
In 2023, the Securities and Exchange Commission (SEC) launched a civil case against Binance, accusing it of selling unregistered securities and failing to protect investors from manipulative trading practices. That lawsuit triggered a parallel criminal investigation by the DOJ, which later accused Binance of allowing users in sanctioned countries such as North Korea and Iran to conduct transactions worth over $100 million without adequate monitoring.
In November 2023, Zhao entered a guilty plea as part of a $4.3 billion settlement with the DOJ, one of the largest in the history of U.S. financial enforcement. He stepped down as Binance CEO, pledging to cooperate with regulators.
However, Trump’s recent pardon effectively erases Zhao’s conviction, marking an unprecedented moment for both the cryptocurrency industry and the intersection of politics and digital finance.
Political Overtones and Industry Reaction
The pardon has sparked mixed reactions across political and financial circles. Supporters argue that the decision symbolises Trump’s pro-crypto stance and his commitment to reducing regulatory overreach. Critics, however, question the timing, pointing to reports that the Trump family’s own crypto venture, reportedly generating $4.5 billion since the 2024 election, has ties to a trading platform “quietly administered by Binance.”
While the White House has dismissed suggestions of a conflict of interest, analysts say the pardon underscores the growing political weight of the cryptocurrency industry in Washington.
Legal experts note that the move could embolden other crypto executives facing similar scrutiny. “This signals a sharp policy shift, from enforcement to encouragement,” said one compliance consultant. “It may invite renewed investment interest but also raises concerns about accountability.”
The End of a Legal Era for Binance
For Binance, Zhao’s pardon may finally lift the shadow that has loomed over its operations for years. The exchange remains the world’s largest by trading volume, though it continues to face ongoing investigations in Europe and Asia.
In a brief social media post following the news, Zhao expressed gratitude, writing:
“Thank you, President Trump, and thank you to everyone who supported fairness and innovation. The journey continues.”
With the pardon, Trump has effectively declared an end to what his administration calls “the Biden-era war on crypto.” Whether this move rejuvenates the U.S. crypto market or fuels further controversy remains to be seen, but one thing is certain: CZ’s legal saga has closed with a political flourish unlike any other in crypto history.
