President Donald Trump's administration officially confirmed on Thursday the granting of a full pardon to Changpeng Zhao, the founder of the cryptocurrency exchange Binance, a decision that has reverberated across both political and crypto landscapes. This announcement swiftly propelled Binance’s native token, BNB, to surge by over 5 percent within an hour, with some reports indicating a 5.5 percent rise towards the $1,145 level. The pardon, which clears Zhao's federal conviction, follows his prosecution by the Biden administration, a move that White House Press Secretary Karoline Leavitt characterized as an "overzealous anti-crypto prosecution."

Zhao, a pivotal figure in the digital asset industry, had previously stepped down from his role as CEO of Binance as part of a plea agreement. This agreement stemmed from his conviction for failing to implement and maintain adequate anti-money laundering controls within Binance. As a result, Binance itself incurred a record-breaking $4.3 billion settlement, while Zhao served a four-month prison sentence. The recent pardon now effectively wipes clean this conviction, potentially paving the way for his more direct re-engagement with the cryptocurrency sector, although his return to a leadership capacity at Binance remains uncertain.

The market's rapid positive reaction underscores the strong connection between Zhao's legal standing and investor sentiment. Speculation regarding a potential pardon had already fueled a rally in BNB, which had been hitting record highs even before the official confirmation. A clean slate for Zhao is largely perceived as a boost for investor confidence in both the Binance ecosystem and the broader BNB Chain.

This act of clemency aligns with a discernible pattern in Trump’s presidency of issuing pardons to high-profile executives. Prior recipients include founders of other crypto platforms like BitMEX, Silk Road founder Ross Ulbricht, a Nikola founder involved in a fraud case, and an executive from Ozy Media. However, the timing and context of Zhao's pardon have sparked scrutiny, particularly concerning potential overlapping financial interests. Reports from May 2025 indicated that Congress had requested information regarding possible connections between Zhao’s pardon application, financial dealings involving Binance, the Trump family-associated crypto venture World Liberty Financial, and a significant $2 billion investment deal.

While White House allies frame the pardon as a necessary corrective against what they term an attack on innovation by the Biden administration, critics raise significant legal and ethical questions. Concerns about favoritism and a political quid pro quo have been voiced due to the ties between Binance, Zhao, and Trump-linked entities. From a regulatory perspective, the pardon does not necessarily dismantle all existing constraints on Binance or its operations. U.S. regulatory bodies retain the authority to assert oversight or initiate civil actions under various securities or financial statutes.

For Binance, the pardon could unlock new opportunities within U.S. operations that were previously hampered by the cloud of its founder's criminal record. Some analysts predict that a legally cleared Zhao might stimulate increased institutional and retail interest in Binance and the BNB ecosystem. Nevertheless, the exchange continues to face formidable challenges, including navigating the legacy of its substantial legal settlement, adhering to ongoing compliance obligations, enduring scrutiny from international regulators, and managing public skepticism. Zhao's personal future role also remains fluid; while his conviction is cleared, whether he will resume an executive position, regain influence, or serve in an advisory capacity is yet to be determined, with some insiders cautioning against a public leadership return to avoid renewed political or regulatory backlash.