Trump Signs Pardon Order
President Donald Trump signed a full pardon on Wednesday for Changpeng Zhao, the founder of crypto exchange Binance, according to the Wall Street Journal. The decision marks one of Trump's most controversial moves since returning to the White House. Zhao was convicted in 2023 for violating U.S. anti-money laundering laws and served a four-month sentence.
Sources said Zhao and allies lobbied for months, arguing his prosecution was politically motivated. Zhao also explored partnerships to boost the Trump family's crypto ventures. White House press secretary Karoline Leavitt confirmed the pardon, stating Trump 'exercised his constitutional authority' to correct what he viewed as a politically driven prosecution. 'The Biden Administration's war on crypto is over,' she said.
FOX Business' Charles Gasparino reported that discussions inside the Trump White House had intensified this quarter. Trump's attention was reportedly divided between foreign policy issues in Gaza, Ukraine, and trade tensions with China. Binance and Zhao have not publicly commented; the story is developing.
Background of CZ and Binance Case
Zhao's 2023 conviction was one of the highest-profile cases in the government's crackdown on major exchanges. U.S. prosecutors accused Binance of allowing illicit transactions with sanctioned entities and lacking proper anti-money laundering controls. Zhao pleaded guilty, stepped down as CEO, and paid a personal $50 million fine. He was sentenced in April 2024 and released in September 2024 after time in a low-security federal prison in California and a halfway house.
Even critics of Binance questioned whether the criminal charges were proportionate. Trump's team views Zhao's situation as an opportunity to demonstrate a 'new era' of crypto policy that favors innovation over punishment.
Political Signals and Industry Impact
The pardon could reshape Washington's stance toward the crypto industry. Advisers said Trump recently expressed sympathy for Zhao, describing his case as part of a broader 'war on cryptocurrency' by the previous administration. The move clears Zhao's record and signals that the new administration intends to cooperate with the crypto sector rather than antagonize it. Analysts believe this could spur innovation and investment, though it may also raise questions about consistent enforcement of financial laws.