President Donald Trump has granted a full pardon to Changpeng Zhao (CZ), the convicted founder of Binance, marking a major turn in U.S. crypto policy. The White House confirmed the pardon via press secretary Karoline Leavitt, stating that Trump “exercised his constitutional authority” amid what officials framed as politically motivated prosecution.

Zhao had pleaded guilty in 2023 to failing to maintain an effective anti-money laundering program, following allegations that Binance allowed illicit transactions tied to terrorism, drug trafficking, and sanctions violations. As part of his plea, Zhao paid a personal fine of US$50 million, and Binance agreed to a US$4.3 billion regulatory settlement. Zhao served a four-month prison term from April to September 2024.

In announcing the pardon, Trump declared that the “war on crypto is over,” accusing the prior administration of targeting Zhao unfairly. Zhao, in turn, expressed deep gratitude and pledged to support U.S. leadership in the crypto space.

Context and Implications

• Regulatory reset: The pardon signals a shift from enforcement to more industry-friendly stances under the Trump presidency, undoing some of the Biden-era crackdowns.

• Legal and reputational impact: With his conviction officially pardoned, Zhao is freed from a major legal obstacle, potentially restoring his ability to participate in business activities without certain restrictions.

• Political controversy: Critics have raised concerns about conflicts of interest, pointing to potential ties between the Trump family’s crypto ventures and Zhao or Binance.

• Industry response: The decision is being closely watched globally, as it may embolden other firms to push for leniency or regulatory retreat. Market participants may interpret it as a signal of renewed U.S. openness to crypto innovation.

• Oversight concerns: Some lawmakers, including Representative Maxine Waters, sharply criticized the pardon, warning it undermines accountability and legal standards, especially given the scale and nature of the offenses.