Trump Pardon for Binance’s Changpeng Zhao: What This Means for the Crypto Industry
In a dramatic twist, U.S. President Donald Trump has pardoned Changpeng “CZ” Zhao, founder of Binance, which is a big development for the cryptocurrency world. The pardon was signed by Trump on Wednesday, as a wave of lobbying took place to free the individual. Zhao’s supporters certainly made the appeal, including legal experts and key figures within the crypto community. Zhao’s conviction is officially erased by the presidential pardon, which may allow him to return as CEO at Binance, the world’s largest crypto exchange.
Binance told Cointelegraph with a statement that his pardon is a “win for the crypto movement” while thanking President Trump for his leadership. Zhao was pointed to for influencing the wider cryptocurrency ecosystem, making Binance a major player in the industry.
What Led to the Pardon?
A few months have passed since Zhao received a conviction for not instilling a sufficient anti-money laundering (AML) program at Binance. Since then, Zhao has been pardoned under the Bank Secrecy Act. Zhao was sentenced to four months in prison in November 2023 after pleading guilty to this single charge. In September 2024, he was released after serving his time.
In crypto circles, the pardon was widely speculated, with betting markets also reflecting growing odds after Zhao removed the tag “ex-Binance CEO” from his social media handles in late September. As Trump was said to be “leaning toward” pardoning the founder of Binance, speculation grew that he would return to lead the exchange.
At a press conference on Thursday, Trump stated that the pardon came by “the recommendation of many people,” who said Zhao had been “persecuted” and committed no crime. “Many told me he wasn’t guilty,” Trump said. “He was persecuted, they say, by the Biden administration.”
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Legal Experts Weigh In on the Pardon
Teresa Goody Guillen, who is Zhao’s Barrister, argued the pardon was justified. Guillén stated that the offense committed by her client was not fraud and her client had no previous record. According to her, CZ is the first and only known first-time offender in the history of the United States ever to go to prison for this crime, which is just one charge and is non-fraud related.
Zhao had no knowledge, reasonable belief. Guillén explained that there was no evidence showing that Zhao had knowledge of illicit activity on Binance, and that it was reasonable for him to believe that there were no illicit funds on the platform.
What Does the Pardon Mean for CZ and Binance?
The presidential pardon has far-reaching implications. Zhao had to leave his position as CEO of Binance as per his plea deal. As part of this deal, he was also barred from conducting any operational activities at the exchange. With Zhao’s pardon, he could potentially return to Binance and the role in which he once led the company before the legal issue.
Zhao took to X, previously known as Twitter, to express his gratitude, stating he was “deeply grateful” for the pardon. Furthermore, Zhao committed to helping make America the “Crypto Capital of the World.” He vowed to continue a global push for Web3.
A History of Crypto Pardons Under Trump
Zhao is not the first person in the crypto space to get a pardon from President Trump. Previously, Trump pardoned the co-founders of BitMEX, particularly Arthur Hayes and the creator of Silk Road, Ross Ulbricht, both of whose sentences were viewed as extremely contentious. Trump’s past actions show he has been eager to help more people in the crypto world, albeit at risk of legal trouble.
