US President Donald Trump has pardoned Changpeng Zhao, the founder of Binance, the worlds largest crypto exchange, who served time for money laundering violations. The pardon, announced on October 23, 2025, comes amid Zhaos ties to the Trump familys crypto venture and raises questions about influence in the industry.
Background on the Pardon Decision
Trump used his presidential powers to grant a full pardon to Zhao, known as CZ in crypto circles. This move clears Zhaos record after he pleaded guilty to failing to stop money laundering on Binance.
The White House stated that the previous administration targeted Zhao unfairly to hurt the crypto sector. Officials claim there were no direct fraud charges or clear victims in the case.
Zhao had requested the pardon earlier, pointing to what he called political persecution. The timing aligns with Trumps push to support digital assets since taking office again.
This is not Trumps first pardon in recent weeks. He also commuted the sentence of former New York Representative George Santos, showing a pattern of using clemency for allies.
Details of Zhaos Conviction and Sentence
Zhao faced charges in 2023 for allowing criminals to use Binance for illegal transactions. Prosecutors said the platform enabled money flows linked to terrorism, drug deals, and child exploitation.
He admitted guilt to one count of violating anti money laundering rules. As part of the deal, Zhao paid a 50 million dollar fine and stepped down as CEO.
Binance itself agreed to a massive 4.3 billion dollar penalty to settle the case. Zhao served four months in prison, ending in September 2024.
During his court appearance, Zhao expressed regret, saying he failed to build proper safeguards. Experts note this case highlighted risks in unregulated crypto exchanges.
The pardon erases his conviction, allowing Zhao to resume business without legal stains. It also prevents any future restrictions on his involvement in finance.
Ties to Trump Family Crypto Venture
Zhaos pardon draws attention due to his connections with World Liberty Financial, a crypto project launched by Trump and his sons in September 2025. The venture promotes a stablecoin called USD1, tied to the US dollar.
Reports show Binance has partnered with World Liberty Financial for investments. An UAE fund plans to use 2 billion dollars in USD1 to buy into Binance, boosting the Trump familys gains.
Trumps financial disclosures reveal he earned over 57 million dollars from the venture last year. This has sparked debates on potential conflicts of interest.
Critics argue the pardon looks like a favor for business ties. Zhao has publicly supported Trumps crypto friendly policies, adding to the scrutiny.
Here is a quick look at key players in this story:
- Changpeng Zhao: Binance founder, convicted in 2023, pardoned in 2025.
- Donald Trump: US President, granted the pardon, owns stake in World Liberty Financial.
- Eric and Donald Trump Jr.: Co founders of the family crypto venture.
- Binance: Worlds top crypto exchange, paid billions in fines.
Public and Political Reactions
The pardon has split opinions across political lines. Supporters in the crypto community praise it as a win against overregulation.
Democratic leaders, like Senator Elizabeth Warren, called it evidence of corruption. She said it shows favoritism toward wealthy donors in the industry.
On social media, users expressed outrage over ties to money laundering. Some posts highlighted how Binance allegedly aided terrorists like ISIS and Hamas.
Republican figures defended the move, saying it ends a war on crypto started under Biden. A GOP senator even denounced critics, pushing for new crypto laws.
Media outlets report growing calls for probes into the Trump familys business dealings. Polls show mixed views, with 45 percent approving the pardon among crypto users.
Implications for the Crypto Industry
This pardon could reshape US crypto rules. Trump has vowed to make America a crypto hub, and this fits that goal.
It may encourage more investments, with Binance stocks rising 5 percent after the news. Experts predict easier paths for other convicted crypto figures.
However, it raises concerns about accountability. Regulators worry it weakens efforts to fight illegal finance in digital assets.
The case ties into broader trends, like rising stablecoin use. World Liberty Financials growth shows cryptos role in mainstream finance.
| Aspect | Before Pardon | After Pardon |
|---|---|---|
| Zhao’s Status | Convicted felon, served 4 months | Fully pardoned, no restrictions |
| Binance Fines | 4.3 billion dollars paid | No further penalties |
| Trump Family Earnings | Over 57 million dollars from venture | Potential for more via partnerships |
| Industry Impact | Stricter regulations | Push for crypto friendly policies |
Looking Ahead in Crypto Regulation
Lawmakers are debating a bipartisan bill on digital assets amid this controversy. The pardon might speed up pro crypto reforms.
Observers say it could lead to more pardons for industry leaders. Trump has hinted at reviewing other cases from the Biden era.
For now, Zhao is free to innovate, but ethical questions linger. This event underscores the blend of politics and finance in crypto.
We invite you to share your thoughts on this pardon in the comments below. Did Trump make the right call? Like and share this article to join the conversation on cryptos future.
