Trump Pardons Binance Founder

Donald Trump has granted a presidential pardon to Changpeng Zhao, the billionaire founder of Binance, closing one of the most high-profile criminal cases in the history of digital assets. The move marks another turning point in Washington’s evolving relationship with the cryptocurrency sector, as the Trump administration continues to unwind many of the prosecutions launched under President Biden.

White House press secretary Karoline Leavitt confirmed the pardon late Thursday, describing Zhao as a “victim of the Biden administration’s war on cryptocurrency.” She said the former Binance chief had been unfairly targeted despite “no allegations of fraud or identifiable victims.”

“The Biden administration’s war on crypto is over,” she added.

Trump extends relief to crypto elite

Zhao’s pardon places him among a growing list of digital-asset executives granted legal clemency by Trump since his return to the White House in January. Those previously pardoned include Ross Ulbricht, creator of the Silk Road online marketplace, and senior figures from the BitMEX trading platform. Arthur Hayes, BitMEX’s co-founder, congratulated Zhao on X, writing simply, “Welcome to the club.”

The decision caps a tumultuous two years for Zhao, known in the crypto world as CZ. In 2023 he pleaded guilty to charges that Binance had failed to implement effective anti–money laundering controls. The company admitted to breaching international financial sanctions and paid a record $4.3 billion penalty to US authorities.

Prosecutors had accused Binance of allowing illicit transactions linked to hackers, sanctioned entities, and terrorist groups including al-Qaeda and Islamic State. Zhao faced a potential three-year prison term but served only four months following a plea agreement. He completed his sentence in late 2024.

In a post on X, Zhao expressed gratitude to the president. “I am deeply thankful for today’s pardon and to President Trump for upholding America’s commitment to fairness, innovation and justice,” he wrote.

A new chapter for Binance and Zhao

Founded in 2017, Binance rose rapidly to dominate global cryptocurrency trading, handling more than half of all crypto exchange volumes at its peak. Its rise also made Zhao one of the wealthiest figures in finance, with a personal fortune estimated at $54 billion, according to Bloomberg.

For much of its history, Binance operated without a fixed headquarters, a strategy that enabled it to skirt national regulations while offering high-risk trading products to global users. The model drew intense scrutiny from regulators across the United States, Europe, and Asia, culminating in last year’s settlement with the US Department of Justice.

Zhao’s pardon now clears the way for him to resume broader business activities in the United States, including investment management and board participation. Legal analysts said it could also restore his eligibility to engage with US securities markets, which had been restricted as part of his plea deal.

Crypto’s political revival

The decision reflects a wider shift in US policy under Trump’s second administration, which has moved aggressively to embrace the cryptocurrency industry. Senior officials have described digital assets as a pillar of America’s financial future, reversing the enforcement-led approach of the previous administration.

Trump’s family has also entered the sector directly. Earlier this year, an Abu Dhabi sovereign fund, MGX, invested $2 billion in Binance using USD1 — a stablecoin issued by World Liberty Financial, a crypto company controlled by members of the Trump family. The investment was the first major transaction conducted entirely in the new dollar-pegged token. MGX cited “compliance history” as one reason for using USD1, which is promoted as fully backed and regulator-approved.

Analysts said the pardon reinforces Trump’s image as a political ally of the crypto industry. Since taking office, his administration has paused or dropped several ongoing investigations into major blockchain firms, signalling a strategic reset aimed at making the US more hospitable to digital finance.

Ripple effects in the market

News of the pardon sent Binance’s native token, BNB, up nearly 8 per cent on Thursday, reflecting optimism that the exchange’s legal overhang is now resolved. Zhao’s investment firm, YZi Labs, is one of the world’s largest crypto funds and has recently increased its stake in a Nasdaq-listed company that buys and holds BNB on its balance sheet.

Investors also expect the decision to accelerate efforts to integrate Binance into the US financial system. The company has been rebuilding relationships with regulators and banks after years of tension. A person close to the exchange said executives view the pardon as “a clean slate.”

Favourable winds for crypto billionaires

The pardon comes amid a series of high-profile reprieves for crypto leaders. In February, US regulators suspended a fraud inquiry into companies linked to Justin Sun, the founder of the Tron blockchain platform. Three months later, Sun and two dozen top holders of the $TRUMP memecoin attended a private dinner with the president at his golf club in Virginia.

According to filings reported by the Financial Times, Trump family enterprises have generated more than $1 billion in pre-tax profits from crypto-related ventures over the past year.

Critics warn of blurred lines

Economists and legal scholars have raised concerns that the White House is now too closely aligned with digital-asset interests. Eswar Prasad, a senior fellow at the Brookings Institution and professor at Cornell University, said the trend represents “a fundamental shift in how the US government views its role.”

“It is clear that the connections between the Trump administration and the crypto industry run deep,” Prasad said. “Government machinery is now being openly deployed to support this sector, which could raise questions about transparency and regulatory capture.”

For Zhao and his supporters, however, the pardon closes a turbulent chapter and marks a new beginning for Binance. Whether it also marks a new era of political protection for the crypto industry remains to be seen.