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.”
