President Donald Trump has officially pardoned Changpeng “CZ” Zhao, the founder and former CEO of Binance, in a move that instantly reignited global debate over crypto regulation and political influence in the financial system.
The decision, confirmed by White House Press Secretary Karoline Leavitt, marks a dramatic turn for one of the most prominent figures in digital finance. Zhao had served a four-month prison sentence in 2024 after pleading guilty to failing to maintain an effective anti-money laundering (AML) program at Binance, a charge that also led the company to pay a $4.3 billion penalty in a settlement with U.S. authorities.
BREAKING: President Trump has pardoned convicted Binance Founder Changpeng Zhao (CZ).
Welcome back @cz_binance. pic.twitter.com/QVHsRS696K
— The Kobeissi Letter (@KobeissiLetter) October 23, 2025
“War on Cryptocurrency” – Trump Administration’s Justification
In a written statement, the White House described Zhao’s prosecution under the Biden administration as part of a broader “war on cryptocurrency and innovation.” Leavitt emphasized that President Trump viewed the case as “excessive and politically motivated,” adding that the pardon was meant to “restore fairness and recognize the importance of responsible digital innovation to the American economy.”
The statement framed the pardon as both symbolic and strategic, positioning the Trump administration as a defender of crypto entrepreneurs and blockchain innovation at a time when the industry continues to face regulatory uncertainty.
A Polarizing Figure in Crypto’s Global Rise
Changpeng Zhao, a billionaire entrepreneur and one of the most influential figures in the crypto ecosystem, built Binance into the world’s largest cryptocurrency exchange before stepping down as CEO in late 2023. His guilty plea had marked a major moment in the U.S. government’s crackdown on offshore crypto operations, cementing Binance’s role in global AML reform efforts.
Though Zhao has kept a low profile since completing his sentence, insiders say he has maintained close ties to the company’s leadership and several digital asset ventures. The pardon effectively clears his criminal record, allowing him to resume work in the crypto sector without legal restrictions, a move that could reshape industry leadership once again.