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In a stunning move that sent shockwaves through the crypto world, President Donald Trump has pardoned Binance founder Changpeng “CZ” Zhao, the White House confirmed Thursday. The decision marks a dramatic turn in one of the most high-profile cases in the digital asset industry’s history — a case the Trump administration is now framing as part of what it calls President Joe Biden’s “war on cryptocurrency.”

White House press secretary Karoline Leavitt said in a statement to Law360 that Trump had “exercised his constitutional authority” to grant Zhao clemency. Zhao, once one of the world’s most influential crypto figures, had served four months in federal prison after pleading guilty in November 2023 to failing to maintain an effective anti-money laundering (AML) program at Binance.

Crypto Executive’s Legal Battle and Binance’s $4.3B Settlement

Zhao’s conviction came amid a sweeping U.S. crackdown on digital assets. As part of a $4.3 billion settlement, Binance admitted to Bank Secrecy Act violations, operating as an unregistered money-transmitting business, and helping users evade sanctions, according to the U.S. Department of Justice, Commodity Futures Trading Commission, and Department of the Treasury.

The DOJ had initially pushed for a three-year prison term, far above sentencing guidelines, citing what it characterized as a reckless disregard for U.S. financial compliance. Trump’s team, however, sees the case differently.

“In their desire to punish the cryptocurrency industry, the Biden administration pursued Mr. Zhao despite no allegations of fraud or identifiable victims,” Leavitt said, labeling the prosecution “politically motivated.”

Zhao’s Path to Forgiveness and Future Prospects

Zhao, who stepped down as Binance CEO as part of his plea deal, revealed in May that he had applied for a presidential pardon from Trump. He noted at the time that while he had not spoken directly with the president, his legal team filed through formal channels available under federal law.

“I’m leaving the future of my case to the system and to fairness,” Zhao said earlier this year, hinting he had no plans to return to Binance even if granted clemency.

His forgiveness marks a symbolic moment for the crypto sector — one that many see as a potential thawing of Washington’s frosty relationship with digital finance under Biden’s regulatory approach.

Crypto Community Reacts as Binance Stays Silent

While Binance has not yet issued an official statement, the industry’s reaction has been swift. Crypto advocates hailed the move as a “turning point for digital freedom,” while critics blasted it as a political stunt aimed at courting tech-savvy voters and wealthy crypto donors.

Still, Trump’s pardon sends a clear message: the battle over the future of cryptocurrency regulation in the U.S. is far from over.

Zhao, once the face of Binance’s global dominance, now stands as a symbol of redemption — a man both chastised and forgiven in an era where digital finance collides head-on with politics and power.