Trump pardons Binance founder Zhao Changpeng in move seen as crypto industry boost

US President Donald Trump has issued a full pardon for Zhao Changpeng, founder of the Binance cryptocurrency exchange, the White House announced on 23 October.

The decision marks one of Trump’s most consequential gestures toward the digital asset industry, which he has described as vital to America’s financial innovation.

Zhao, widely known as “CZ,” resigned as Binance’s chief executive in 2023 after the company pleaded guilty to failing to maintain an effective anti-money laundering programme. The exchange paid a penalty of US$4.3 billion, while Zhao personally paid a US$50 million fine and served nearly four months in prison.

According to White House press secretary Karoline Leavitt, the prosecution of Zhao was part of what she termed the Biden administration’s “war on cryptocurrency.”

She added that all pardons had been “carefully reviewed.”

In a post on social media platform X, Zhao expressed gratitude for the pardon, stating: “Deeply grateful for today’s pardon and to President Trump for upholding America’s commitment to fairness, innovation, and justice.” He pledged to “help make America the Capital of Crypto.”

The pardon may allow Zhao to return to Binance, which he co-founded in 2017, potentially enabling the exchange to expand its US presence as the sector experiences renewed growth under Trump’s leadership.

A Binance spokesperson thanked Trump for his “leadership” and said the firm remained focused on “responsible innovation.”

Binance faced significant scrutiny from US authorities in 2023, when it was accused of failing to report suspicious transactions with entities linked to Hamas and Al-Qaeda, as well as websites associated with child sexual abuse materials.

Despite his conviction, Zhao retained his ownership stake in Binance, appointing a successor to lead the company. “I made mistakes, and I must take responsibility,” Zhao had said upon resigning.

The pardon follows several high-profile clemency decisions by Trump during his second term. Earlier in the year, he pardoned the founders of BitMEX, another cryptocurrency exchange, and Ross Ulbricht, the founder of the Silk Road online marketplace.

Political observers note that Trump’s extensive use of pardon powers contrasts with traditional presidential practice, as most presidents reserve such actions for the end of their terms.

The US Constitution grants the president broad authority to issue pardons or commutations for federal offences.

The crypto industry played a substantial role in supporting Trump’s 2024 presidential campaign.

During his campaign, Trump pledged to end what he characterised as an overreach by the Biden administration against the digital currency sector.

Binance also contributed indirectly to ventures linked to Trump’s family. In May, the company accepted World Liberty Financial’s USD1 stablecoin as payment for a US$2 billion investment by Abu Dhabi’s MGX.

The move bolstered World Liberty Financial, which is associated with Trump family interests, and gave its USD1 stablecoin significant market presence.

Senator Elizabeth Warren sharply criticised the pardon, saying, “First, Zhao Changpeng pleaded guilty to a criminal money laundering charge. Then he boosted one of Donald Trump’s crypto ventures and lobbied for a pardon. Today, Donald Trump did his part and pardoned him.”

The White House has denied any conflict of interest related to the family’s crypto ventures.

Trump’s series of pardons has extended beyond crypto.

He also granted clemency to the founder of electric truck firm Nikola and commuted the sentence of the executive behind Ozy Media.

On his first day back in office, Trump pardoned about 1,500 individuals charged over the 6 January 2021 Capitol riot.