US President Donald Trump has granted a full pardon to Binance co-founder Changpeng “CZ” Zhao, the White House announced on Thursday, accusing former President Joe Biden of waging an unnecessary “war” on the cryptocurrency industry.
Binance, founded in 2017, quickly rose to become the world’s largest cryptocurrency exchange by trading volume, making Zhao a billionaire. However, in 2023, he pleaded guilty to violating US anti–money-laundering laws following a Justice Department probe into the exchange’s operations. Zhao served a four-month prison sentence in 2024.
The presidential pardon wipes Zhao’s criminal record and could pave the way for Binance’s return to the US, nearly two years after it suspended domestic operations as part of a settlement with US authorities.
“In their desire to punish the cryptocurrency industry, the Biden Administration pursued Mr. Zhao despite no allegations of fraud or identifiable victims,” the White House said in a statement shared with AFP. “The prosecution of Mr. Zhao severely damaged the United States’ reputation as a global leader in technology and innovation. That era — the war on crypto — is now over.”
According to the Wall Street Journal, Binance had lobbied for Zhao’s pardon for almost a year. The company has also been a “key supporter” of the Trump family’s crypto venture, World Liberty Financial.
Although Zhao stepped down as Binance’s CEO in 2023, he remains the firm’s majority shareholder. In a post on social media platform X, he expressed gratitude to Trump for what he called a reaffirmation of “America’s commitment to fairness, innovation, and justice.”
“I’m deeply grateful to President Trump for his leadership and vision,” Zhao wrote.
Democrats swiftly condemned the decision. Senator Elizabeth Warren (D-Mass.) blasted the pardon, calling it “corruption in plain sight.”
“CZ pleaded guilty to a criminal money-laundering charge and served time in prison. Then he financed Trump’s stablecoin and lobbied for a pardon — and today, he got it,” Warren said on X. “If Congress doesn’t stop this kind of corruption, it owns it.”
Since returning to the White House, Trump has embraced the cryptocurrency sector, reversing his earlier skepticism. His administration has rolled back regulatory restrictions imposed during the Biden era, a shift welcomed by digital asset investors and firms.
The crypto industry has also become a major political backer for Trump’s 2024 campaign, contributing more than $100 million to his re-election effort. A Financial Times investigation recently estimated that the Trump family’s crypto ventures generated about $1 billion in pre-tax profits over the past year.
Thursday’s announcement marks yet another controversial pardon by Trump, following his blanket clemency for individuals convicted in the January 6, 2021 Capitol riot and his commutation of former Republican congressman George Santos, who was convicted of wire fraud and identity theft.
AFP
