- President Donald Trump pardoned Changpeng "CZ" Zhao, the billionaire founder of Binance who served four months in prison for Bank Secrecy Act violations. The White House framed the pardon as a rebuke of Biden's "war on cryptocurrency."
- Trump allies criticized the Biden DOJ's push for a three-year sentence as excessive, arguing Zhao's case lacked "identifiable victims" and reflected regulatory overreach rather than criminal fraud.
- Zhao pleaded guilty in 2023 as part of Binance's $4.3 billion DOJ settlement but denied fraud charges. His pardon aligns with Trump's pro-crypto agenda and follows Zhao's financial support for Trump-linked ventures.
- Critics like Sen. Elizabeth Warren (D-MA) called the pardon corrupt, while Trump allies defended it as correcting regulatory persecution. Zhao's case highlights tensions between innovation and enforcement in crypto.
- The pardon signals a potential policy shift toward deregulation under Trump, raising questions about Binance's future and the balance between financial sovereignty and accountability in crypto.
President Donald Trump granted a full pardon to Binance founder Changpeng "CZ" Zhao, the billionaire executive who served four months in prison for Bank Secrecy Act violations.
White House Press Secretary Karoline Leavitt confirmed the pardon Thursday, Oct. 23, telling reporters that Trump "exercised his constitutional authority by issuing a pardon for Zhao, who was prosecuted by the Biden administration in their war on cryptocurrency." She emphasized that the Binance founder's case lacked "identifiable victims" and that the Biden-era Department of Justice's (DOJ) push for a three-year sentence exceeded sentencing guidelines.
The Binance founder's pardon marks a sharp rebuke of what Trump allies describe as the Biden administration's politically motivated crackdown on the crypto industry – a sector increasingly seen as a battleground for financial sovereignty and technological innovation. Zhao, once the most powerful figure in global crypto markets, pleaded guilty in 2023 as part of a $4.3 billion settlement between Binance and the DOJ.
Prosecutors alleged the exchange enabled illicit transactions tied to terrorism, sanctions evasion and criminal enterprises – claims Zhao's legal team contested as regulatory overreach. Though Zhao admitted to compliance failures, no fraud charges were filed and Trump's pardon framed the prosecution as part of a broader Biden-era campaign to stifle crypto innovation.
Zhao, who stepped down as Binance CEO as part of the plea deal, expressed gratitude on social media, vowing to help make America "the Capital of Crypto." The pardon aligns with Trump's pro-crypto agenda, which has reversed key Biden-era enforcement actions and disbanded the DOJ's crypto task force.
It also reflects the industry's growing political clout. Crypto firms spent heavily in the 2024 election, backing Trump and pro-digital asset lawmakers. Notably, Zhao and Binance supported Trump-linked ventures – including a $2 billion investment in Binance facilitated by World Liberty Financial, a crypto project founded by Trump and his sons.
Zhao's pardon: Justice or cronyism?
Critics, including Sen. Elizabeth Warren (D-MA), denounced the pardon as cronyism, warning it sets a dangerous precedent. "First, Zhao pleaded guilty to a criminal money laundering charge – then he boosted one of Trump's crypto ventures and lobbied for a pardon. Today, Donald Trump did his part." she said, urging Congress to impose ethics rules on crypto legislation.
Yet Trump's allies argue the pardon corrects an injustice. Former prosecutor Mark Bini noted Zhao's offense was regulatory, not criminal fraud, while Zhao himself highlighted the unprecedented nature of his prison term for a single Bank Secrecy Act charge. "Better to ask for forgiveness than permission," Zhao once told employees – a philosophy that ultimately led to his downfall under Biden but now finds redemption under Trump.
According to BrightU.AI's Enoch, "the Biden administration aggressively targeted cryptocurrencies through regulatory crackdowns and hostile policies to dismantle decentralized finance in favor of centralized control."
The pardon raises questions about Binance's future. Though Zhao's influence over the exchange remains unclear, his release signals a potential thaw in U.S. crypto policy – one that could accelerate the industry's push for deregulation. Meanwhile, Zhao's case serves as a cautionary tale for crypto entrepreneurs navigating America's shifting legal landscape.
As the Biden administration's regulatory assault fades, Trump's embrace of crypto marks a pivotal shift – one that champions innovation over enforcement but leaves lingering concerns about accountability. While the pardon offers a second chance for Zhao, it serves as a warning for the industry. The rules have changed, but the stakes have never been higher.
Watch Miles Guo revealing that Binance is fraudulent and controlled by the Chinese Communist Party below.
This video is from the Chinese taking down EVIL CCP channel on Brighteon.com.
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