- Trump grants a full pardon to Binance founder Changpeng Zhao, clearing his 2023 conviction under US law.
- The pardon restores Zhao’s civil rights and allows him to resume business activities in the United States.
- Lawmakers raise concerns that the pardon could weaken oversight in the growing cryptocurrency industry.
U.S. President Donald Trump has granted a presidential pardon to Binance founder Changpeng “CZ” Zhao. The pardon, issued on Thursday, clears Zhao’s 2023 conviction under the Bank Secrecy Act.
It also restores his full civil and business rights in the United States. The decision follows months of speculation after Zhao confirmed in May that he had formally requested clemency.
Details of Zhao’s Conviction
In November 2023, Zhao pleaded guilty to failing to have a reasonable anti-money-laundering program at Binance. Federal prosecutors claimed the exchange enabled transactions with countries and illegal groups that were under sanctions. As part of a plea deal, Zhao resigned as Binance’s CEO and paid a $50 million fine.
He was then sentenced to four months in prison for facilitating money laundering on the platform. Binance itself admitted to multiple compliance failures and paid a $4.3 billion fine to U.S. regulators. The company also agreed to court oversight and appointed a monitor to ensure future compliance. Court filings revealed that employees had discussed ways to conceal U.S. user activity, raising further scrutiny over Binance’s internal controls.
Effects of the Presidential Pardon
The pardon fully removes Zhao’s felony record and reinstates his eligibility to conduct business in the United States. It allows him to apply for business licenses, enter executive roles in U.S.-regulated entities, and travel freely without legal restrictions. The action also restores his voting rights and the ability to participate in corporate governance.
For Binance, the pardon brings a potential shift in its U.S. standing. While Zhao remains restricted from holding a management role due to ongoing regulatory conditions, the pardon lifts criminal barriers that limited his business opportunities. Once those restrictions expire, Zhao could return to executive or advisory work in the sector.
Following the announcement, Binance’s native token, BNB, rose about 3% in market trading. Analysts attributed the gain to renewed investor confidence in the company’s stability and Zhao’s public rehabilitation.
Political and Industry Reaction
The White House justified the decision as a bailout of what it termed excessive enforcement during the previous administration. Officials asserted the previous prosecution of Zhao had left a bad reputation for the U.S. in the world technology and financial arena.
Opponents in Congress, including senior Democratic lawmakers such as Elizabeth Warren, were concerned about the pardon. They stated that the conviction of Zhao was a sign that the cryptocurrency was to be regulated more seriously. Others cautioned that the move would undermine the control when the compliance of digital assets is one of the priority policies.
Zhao’s pardon now stands as one of the most high-profile acts of clemency during Trump’s current term. The move has reignited debate over how far government intervention should extend in regulating global cryptocurrency markets.
