Trump Grants Pardon to Binance Founder CZ After $4.3B Settlement and Four-Month Sentence

Move Marks a Major Political and Regulatory Shift as Crypto Industry Reacts to Presidential Clemency

TL;DR

• Donald Trump issued a full pardon to Binance founder Changpeng “CZ” Zhao on October 23, 2025, less than two years after his guilty plea over anti-money-laundering violations.
• The pardon follows Binance’s $4.3 billion settlement with U.S. authorities and Zhao’s completed four-month prison sentence.
• The decision underscores Trump’s pro-crypto stance and fuels renewed debate over political influence, market regulation, and industry accountability.

Donald Trump has granted an unconditional pardon to Binance founder Changpeng Zhao, wiping away the federal conviction that followed one of the largest corporate settlements in crypto history. Signed on October 23, 2025, the pardon absolves Zhao of his 2023 guilty plea for failing to maintain an effective anti-money-laundering program at Binance, a violation that cost the exchange $4.3 billion in fines and placed it under multi-year monitoring by U.S. authorities. Zhao had already served a four-month sentence, completed in September 2024, and paid a personal fine of roughly $50 million before the White House intervened.

White House press secretary Karoline Leavitt framed the move as the official end of what Trump’s team has called “the Biden Administration’s war on crypto,” arguing the prosecution targeted Zhao despite “no allegations of fraud or identifiable victims.” The statement emphasized Trump’s intent to “restore fairness and innovation” to digital finance and described the pardon as a corrective measure against regulatory overreach. Zhao, who resigned as Binance’s CEO under his plea agreement, responded shortly after the announcement, expressing gratitude to Trump “for upholding America’s commitment to fairness, innovation, and justice,” and pledging to help make the United States “the Capital of Crypto.”

The pardon represents a pivotal moment for both Binance and the broader digital asset landscape. U.S. prosecutors had accused the exchange of facilitating transactions tied to sanctioned entities and illicit marketplaces, citing flows such as $106 million from Hydra and $275 million from BestMixer. Although Zhao’s plea deal ended the criminal proceedings, the settlement mandated a compliance overhaul and installation of an independent monitor to oversee Binance’s future conduct. With the presidential pardon, Zhao regains full civil and professional rights previously restricted under federal conviction, though the underlying settlement obligations remain intact.

Market reaction was immediate. Binance’s native token, BNB, climbed roughly 5% within minutes of the news, while broader sentiment across the crypto price index strengthened as traders interpreted the pardon as a signal of regulatory thaw under Trump. Analysts noted that the decision could narrow the enforcement premium baked into the coin market cap of major exchanges and potentially reopen the door for Binance’s expansion in the United States. Binance itself celebrated the announcement, releasing a statement thanking Trump for his “leadership and commitment to making the U.S. the crypto capital of the world.”

Critics, however, pointed to political entanglements surrounding the case. Reports highlighted Trump-aligned ventures, including World Liberty Financial, which has partnered with Binance-linked entities and received a $2 billion investment from Abu Dhabi’s MGX through its USD1 stablecoin initiative. Senator Elizabeth Warren condemned the pardon as “corruption in plain sight,” citing Zhao’s prior conviction and Binance’s financial support for Trump-affiliated projects. She argued that “if Congress does not stop this kind of corruption, it owns this lawlessness,” adding fuel to an already polarized debate over the intersection of politics and crypto.

The pardon’s timing—just months before a potential Trump re-election bid—adds weight to its symbolism. It signals a decisive regulatory pivot, replacing the enforcement-first stance of previous administrations with a more conciliatory approach toward digital assets. For the crypto industry, the move could mark the beginning of a new chapter: one where executive clemency, market recovery, and evolving global oversight converge to redefine how digital finance coexists with Washington’s power structure. Whether the market rally proves durable or merely reflects short-term optimism remains uncertain, but the broader coin market cap and crypto price indexes will likely remain a barometer of how investors interpret the balance between political influence and financial innovation.

This article has been refined and enhanced by ChatGPT.