WASHINGTON, USA — President Donald Trump has granted a presidential pardon to Changpeng Zhao, the co-founder and former chief executive officer of Binance, the world’s largest cryptocurrency exchange, who pleaded guilty to money laundering violations in 2023.
Two sources familiar with the matter confirmed the pardon to CNN, while the White House said the decision reflects Trump’s opposition to what he described as the previous administration’s “war on cryptocurrency.”
In a statement, White House Press Secretary Karoline Leavitt said Trump “exercised his constitutional authority by issuing a pardon for Mr. Zhao, who was prosecuted by the Biden Administration in their war on cryptocurrency.”
She added that the president and his advisers believed Zhao’s sentencing was excessively harsh and that his case had become emblematic of what they viewed as regulatory overreach.
Zhao, widely known by his initials CZ, was sentenced to four months in prison in May 2024 after admitting he failed to maintain an adequate anti-money laundering program at Binance.
His plea agreement followed a sweeping federal investigation that led to a $4 billion settlement between Binance and the US government.
Under the terms of that settlement, Zhao personally agreed to pay $200 million in fines, while Binance admitted to violations involving money laundering, unlicensed money transmission, and sanctions breaches.
The company also pledged to strengthen compliance measures and submit to independent monitoring.
Zhao stepped down as Binance’s CEO in November 2023 as part of the agreement, a move seen at the time as essential for the company’s continued operations.
The pardon, first reported by The Wall Street Journal, could pave the way for Binance to resume operations in the United States after years of legal challenges and regulatory scrutiny.
Trump’s decision is expected to intensify debate over his administration’s emerging stance on cryptocurrency.
The former president has in recent months signalled support for blockchain innovation and digital assets, frequently criticising what he calls “bureaucratic hostility” toward the crypto industry under the Biden administration.
The pardon has drawn mixed reactions from political and financial circles.
Supporters say it could encourage innovation and restore US competitiveness in the crypto market, while critics argue it risks undermining accountability in an industry already grappling with money laundering and fraud concerns.
Zhao’s pardon marks one of the most high-profile acts of clemency in Trump’s second term and underscores his administration’s efforts to court the crypto industry.
For Binance, the decision could signal a path toward rebuilding trust with regulators and investors after years of controversy.
For Washington, it rekindles a complex debate over how far political power should reach into financial regulation — and how the future of digital currency will be shaped by those who control it.
