In a stunning political and financial development, President Donald Trump has pardoned Binance founder Changpeng Zhao, widely known as CZ, who had pleaded guilty to money laundering violations during his tenure as CEO of the world’s largest cryptocurrency exchange. The White House announced the pardon Thursday, marking one of Trump’s most controversial acts of clemency to date.
The decision comes just two months after The Wall Street Journal reported that the Trump family’s own cryptocurrency venture, which has generated about $4.5 billion since the 2024 election, was linked to “a partnership with a trading platform quietly administered by Binance.”
White House Defends the Move
White House Press Secretary Karoline Leavitt defended the pardon, framing it as a victory against what she described as the Biden Administration’s “war on cryptocurrency.”
“President Trump exercised his constitutional authority by issuing a pardon for Mr. Zhao, who was prosecuted by the Biden Administration in their desire to punish the cryptocurrency industry,” Leavitt said. “There were no allegations of fraud or identifiable victims.”
When asked about his decision, Trump downplayed the move.
“I don’t know, he was recommended by a lot of people,” Trump told reporters. “A lot of people say that he wasn’t guilty of anything. And so I gave him a pardon at the request of a lot of very good people.”
Lobbying Links and Political Connections
The pardon follows intense lobbying efforts by Binance in Washington. According to NBC News, Binance hired Charles McDowell, a close friend of Donald Trump Jr., through his firm Checkmate Government Relations. The firm disclosed receiving $450,000 in fees last month for lobbying the White House and Treasury Department on “financial services policy issues relating to digital assets and cryptocurrency.”
The clemency also comes a week after Trump commuted the 87-month prison sentence of former Congressman George Santos, another high-profile Republican ally convicted of fraud and identity theft.
Reaction from Changpeng Zhao and Binance
Following the announcement, Zhao expressed gratitude in a post on X (formerly Twitter):
“Deeply grateful for today’s pardon and to President Trump for upholding America’s commitment to fairness, innovation, and justice,” he wrote.
“Will do everything we can to help make America the Capital of Crypto and advance web3 worldwide.”
Binance, in an official statement, called the pardon “incredible news.”
“We thank President Trump for his leadership and commitment to making the U.S. the crypto capital of the world,” the company said. “CZ’s vision not only made Binance the world’s largest crypto exchange but shaped the broader crypto movement.”
Criticism and Political Fallout
The pardon has drawn sharp condemnation from Democratic lawmakers, particularly Senator Elizabeth Warren (D-Mass.), who called it an act of “corruption.”
“First, Changpeng Zhao pleaded guilty to a criminal money-laundering charge,” Warren said. “Then he boosted one of Donald Trump’s crypto ventures and lobbied for a pardon. Today, Donald Trump did his part and pardoned him.”
Warren warned that if Congress fails to address such actions in upcoming digital asset legislation, it would be “owning this lawlessness.”
Zhao’s Legal Background
Zhao pleaded guilty in November 2023 in federal court in Seattle as part of a $4.3 billion settlement between Binance and the U.S. Department of Justice. He admitted to violating the Bank Secrecy Act by failing to implement an effective anti-money-laundering program, and to willfully violating U.S. economic sanctions.
He was sentenced in April 2024 to four months in prison, despite prosecutors requesting a three-year term — a demand that the presiding judge described as “unprecedented.”
At the time, Attorney General Merrick Garland condemned Binance’s actions, saying:
“Binance became the world’s largest cryptocurrency exchange in part because of the crimes it committed — now it is paying one of the largest corporate penalties in U.S. history.”
Then–Treasury Secretary Janet Yellen added that Binance’s failures “allowed money to flow to terrorists, cybercriminals, and child abusers through its platform.”
End of the ‘War on Crypto’?
White House Press Secretary Leavitt suggested that Zhao’s pardon marks a turning point for the digital asset industry under Trump’s leadership.
“The Biden Administration sought to imprison Mr. Zhao for three years — a sentence so far outside the guidelines that even the judge questioned it,” Leavitt said. “These actions severely damaged America’s reputation as a global leader in technology and innovation. The Biden Administration’s war on crypto is over.”
The pardon of Changpeng Zhao not only signals a dramatic policy shift on cryptocurrency regulation but also highlights the increasingly close relationship between politics and digital finance — a trend likely to intensify as the 2026 election season approaches.