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Former Binance CEO Changpeng Zhao, often called “CZ,” is once again at the center of controversy after President Donald Trump issued him a presidential pardon on October 23. The decision came just as new reports surfaced alleging that Binance helped the Trump family’s cryptocurrency company make billions before the pardon.

Trump Pardons Changpeng Zhao 

According to a Wall Street Journal report, Binance developed the technology behind World Liberty Financials’ stablecoin, USD1, which skyrocketed in value from $127 million to over $2.1 billion earlier this year. The Trump family reportedly holds a majority stake in the company through a parent firm, fueling allegations of political favoritism.

Trump’s administration defended the decision, claiming Zhao was “targeted by the Biden administration in their war on cryptocurrency.”

Zhao’s Legal Troubles and Binance’s U.S. Comeback

Zhao’s legal saga dates back to 2023 when he pleaded guilty to violating the Bank Secrecy Act and failing to establish an anti–money laundering program. He stepped down as Binance CEO as part of a record $4.3 billion settlement with the U.S. Department of Justice (DOJ) and served less than six months in prison.

Now, with his pardon secured, Binance—the world’s largest cryptocurrency exchange—is reportedly preparing to re-enter the American market after its 2023 ban.

A Binance attorney told the Journal that Zhao was not “the relationship facilitator or financier” in the deal between World Liberty and MGX, an Emirati state-financed group that invested $2 billion in the firm using the new stablecoin.

World Liberty’s lawyer denied any coordination with Zhao’s team, asserting the company “never assisted in, facilitated, or influenced” the pardon decision.

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Operation Chokepoint 2.0 and the Biden Crypto Crackdown

The pardon reignited debate over “Operation Chokepoint 2.0,” a term used by crypto advocates to describe alleged efforts by the Biden administration to discourage banks from working with cryptocurrency firms.

Newly released documents obtained through the Freedom of Information Act suggest that federal regulators and agencies like the SEC and FDIC pressured banks to “pause all crypto-asset-related activity.”

David Sacks, Trump’s new AI and Crypto Czar, stated, “There were too many stories of people being hurt by Operation Choke Point 2.0. It needs to be looked at.”

Fox News reported that industry leaders are alarmed, saying such regulatory hostility could “kill innovation” in the U.S.