Key Notes
- White House labels CZ’s prosecution as part of Biden’s alleged war on cryptocurrency innovation.
- Reports reveal Trump family discussions with Binance about US division investment amid pardon campaign.
- Presidential pardon removes legal barriers but doesn’t automatically restore Zhao’s executive authority at Binance.
President Donald Trump has issued a pardon to Changpeng Zhao (CZ), the founder of the cryptocurrency exchange Binance, the White House said on Thursday, October 23.
The pardon follows Zhao’s 2023 conviction for failing to maintain an adequate anti-money-laundering system. Zhao had served a four-month sentence and stepped down as CEO in 2024.
White House Frames Pardon as End to Crypto Crackdown
White House Press Secretary Karoline Leavitt described Zhao’s case as part of what she called the Biden administration’s “war on cryptocurrency,” according to the Wall Street Journal. In her statement, Leavitt said Trump exercised his constitutional powers to “end politically motivated prosecution against innovators in digital assets.”
Zhao was prosecuted as part of a sweeping investigation that led Binance to pay more than $4 billion in fines for violations of US financial laws.
Pardon Strengthens Ties Between Binance and Trump Allies
Speculation about the presidential pardon grew hotter in September, as Changpeng Zhao made minor changes to his social media profiles. The decision comes months after reports of communication between Trump’s circle and Binance executives regarding potential partnerships; CZ and the current Binance CEO, Richard Teng, denied them.
The Wall Street Journal reported that it had obtained discussions between Trump family representatives and Binance regarding an investment in the US division of the company. The talks reportedly coincided with Zhao’s campaign seeking a pardon—a move that raised ethical questions over overlapping political and business interests.
Path Cleared for Zhao’s Return to Crypto Operations
Zhao retains majority ownership in Binance but has been barred by US regulators from holding executive roles. The presidential pardon does not automatically reinstate his authority at Binance. Still, it clears pending legal restrictions that have limited his ability to operate in the US and other jurisdictions.
This perception has emerged with Binance this year, but could change thanks to Trump’s presidential pardon. Industry observers view the move as a potential catalyst for Binance’s efforts to resume full-scale American operations and rebuild its reputation following years of legal challenges.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
José Rafael Peña Gholam is a cryptocurrency journalist and editor with 9 years of experience in the industry. He wrote at top outlets like CriptoNoticias, BeInCrypto, and CoinDesk. Specializing in Bitcoin, blockchain, and Web3, he creates news, analysis, and educational content for global audiences in both Spanish and English.
