TL;DR: President Donald Trump pardoned Binance founder Changpeng Zhao on October 23, 2025, erasing his 2023 guilty plea for violating money laundering laws and his four-month prison sentence, calling it part of ending the "war on cryptocurrency."
What Happened
- Trump issued a full pardon to Changpeng Zhao (known as CZ) on October 23, 2025, nullifying his November 2023 guilty plea for failing to maintain an effective anti-money laundering program at Binance.
- Zhao had served a four-month prison sentence from May to September 2024, paid a $50 million fine, and stepped down as CEO as part of his plea deal.
- Binance separately agreed to pay a record $4.3 billion in fines to U.S. agencies including the Department of Justice, addressing charges of anti-money laundering violations, unlicensed money transmission, and sanctions breaches.
- The pardon restores Zhao's civil rights and removes barriers to his business involvement, potentially allowing him to resume leadership roles at Binance or related ventures.
Official Statements
- White House Press Secretary Karoline Leavitt said Zhao had been "prosecuted by the Biden Administration in their war on cryptocurrency" and added, "In their desire to punish the cryptocurrency industry, the Biden Administration pursued Mr. Zhao despite no allegations of fraud or identifiable victims."
- Zhao posted on X: "Deeply grateful for today's pardon and to President Trump for upholding America's commitment to fairness, innovation, and justice. Will do everything we can to help make America the Capital of Crypto."
- A Binance spokesperson called it "incredible news" and thanked "President Trump for his leadership and for his commitment to make the US the crypto capital of the world."
Criticism and Controversy
- Senator Elizabeth Warren condemned the pardon, stating: "First, Changpeng Zhao pleaded guilty to a criminal money laundering charge. Then he boosted one of Donald Trump's crypto ventures and lobbied for a pardon. Today, Donald Trump did his part and pardoned him. If Congress does not stop this kind of corruption in pending market structure legislation, it owns this lawlessness."
- Court documents from 2023 showed Binance employees knowingly violated the Bank Secrecy Act, with Zhao allegedly authorizing strategies to obscure U.S. customer identities and facilitate transactions with users in sanctioned countries.
- The case tied Binance to illicit transactions, including $106 million in proceeds from darknet marketplace Hydra and $275 million in deposits from mixing service BestMixer.
Market Impact
- BNB, Binance's native token, surged approximately 3-20% immediately following the pardon announcement (reports vary on exact percentage).
- The pardon is seen as potentially easing regulatory hurdles for cryptocurrency exchanges in the U.S. and aligns with Trump's campaign promises to make America the "crypto capital."