Trump Pardons Binance Founder ‘CZ,’ Igniting Fresh Crypto Firestorm

With input from CNBC, Bloomberg, NBC News, Reuters, Business Insider, and the New York Times.

President Donald Trump has granted a full pardon to Changpeng “CZ” Zhao, the billionaire founder of Binance, wiping away his 2023 federal conviction for anti–money laundering failures tied to the world’s largest crypto exchange.

Zhao pleaded guilty last year to violating the Bank Secrecy Act after US authorities said Binance failed to implement basic compliance controls and allowed illicit money to move through the platform. As part of a broader $4.3 billion settlement with the Justice Department, Zhao stepped down as CEO, paid a $50 million fine, and served four months in prison.

The White House framed the move as a course correction. Press secretary Karoline Leavitt said Trump “exercised his constitutional authority” to end what she called the Biden administration’s “war on cryptocurrency,” arguing Zhao’s case involved no fraud or identifiable victims. Federal prosecutors had sought a three-year sentence, a request the judge ultimately rejected.

Zhao celebrated on X, calling the pardon an affirmation of “fairness, innovation, and justice,” and pledged to help “make America the Capital of Crypto.” Binance did not immediately comment on whether the pardon changes Zhao’s role at the company, where he remains the dominant shareholder.

The decision drew immediate blowback from critics on Capitol Hill. Sen. Elizabeth Warren called the pardon “corruption,” noting Zhao’s lobbying push and Binance’s ties to a Trump-family crypto venture. She urged Congress to tighten pending market-structure legislation to prevent similar outcomes.

Zhao’s case became a symbol of Washington’s wider crackdown on crypto compliance. When DOJ announced the Binance settlement, then–Attorney General Merrick Garland said the penalty ranked among the largest in US history and accused the exchange of enabling transactions tied to sanctioned actors and other crimes. Treasury Secretary Janet Yellen said Binance’s “willful failures” let illicit funds flow.

What the pardon doesn’t change: Binance’s obligations under its settlement and the stiff scrutiny facing crypto platforms that touch US markets. What it might change: the political winds. With Trump openly courting digital-asset investors, the clemency signals a friendlier posture toward the industry — and sets up a sharper fight with lawmakers and regulators who want tougher guardrails.