- Trump’s pardon of Binance founder Changpeng Zhao ends a year-long legal saga and signals a friendlier stance on crypto regulation.
- The decision follows extensive lobbying and comes amid growing links between Binance and the Trump family’s crypto venture.
- Lawmakers from both parties have criticised the move, warning it risks undermining accountability in financial regulation.
US President Donald Trump has granted a full pardon to Changpeng “CZ” Zhao, the founder of Binance, concluding months of speculation over his legal fate and marking a major shift in Washington’s approach to cryptocurrency regulation.
The White House announced the decision on Thursday, stating that Trump had “exercised his constitutional authority by issuing a pardon for Mr Zhao, who was prosecuted by the Biden Administration in their war on cryptocurrency” and declared that “the war on crypto is over”.
Zhao, one of the world’s wealthiest crypto figures, had pleaded guilty in late 2023 to failing to maintain an anti-money laundering program, which led to a US$4.3 billion (AU$6.6 billion) settlement with regulators and a four-month prison sentence. His guilty plea also forced Binance to cease operations in the United States.
Related: Senator Warren Demands Answers on Binance’s US Compliance Deal
Behind the Pardon
The pardon follows nearly a year of lobbying and private meetings aimed at persuading the Trump administration to reverse Zhao’s conviction. According to the Wall Street Journal, Zhao and Binance worked to rebuild relations with Trump’s circle after the launch of World Liberty Financial.
Binance issued a statement thanking Trump for his “leadership and commitment to make the US the crypto capital of the world,” while CZ posted a similar sentiment to X.
Trump told reporters that he believed Zhao’s prosecution had been politically driven, suggesting that he was widely considered innocent and that his actions did not constitute a crime.
Bipartisan Backlash Follows
Critics, however, warned that the decision undermines accountability. Democratic senators led by Elizabeth Warren accused the administration of favouring corporate interests, while Republican Senator Thom Tillis said the move “sends a bad signal,” emphasising that Zhao “was convicted” and “is not innocent”.
If Congress does not stop this kind of corruption in pending market structure legislation, it owns this lawlessness.
Senator Elizabeth WarrenThe pardon may pave the way for Binance’s return to the US market, although the company has yet to receive regulatory approval.
Related: Newsom Mocks Trump with Planned “Trump Corruption Coin” Memecoin
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