President Donald Trump pardoned Binance founder Changpeng Zhao on October 23, just days before the exchange promoted his family's cryptocurrency products. Critics, including Democrats and one Republican, question the timing due to business links between Binance and the Trump family's crypto ventures. The pardon allows Zhao to return to the business after serving four months in prison for money-laundering.
On October 23, President Donald Trump issued a pardon to Changpeng "CZ" Zhao, the founder of Binance, the world's largest cryptocurrency exchange. Zhao, a Chinese-born Canadian tech tycoon, had pleaded guilty to money-laundering charges in 2023 and served four months in federal prison. The pardon came amid Trump's campaign promises to ease Biden-era crypto regulations, which the White House described as ending "the Biden administration’s war on crypto," according to Press Secretary Karoline Leavitt.
Five days later, on October 28, Binance's U.S. subsidiary announced on X that deposits for $USD1, a Trump-affiliated stablecoin pegged to the U.S. dollar and backed by regulated reserves including U.S. Treasuries, were now open on BinanceUS. The firm also began accepting Trump's $WLFI token on its U.S. platform, expanding access for American investors and potentially boosting their value. Trading for USD1 started on October 29. Both tokens were already available on Binance's international platform, unavailable in the U.S.
World Liberty Financial, launched by Trump and his three sons in September 2024 alongside Steve Witkoff and his sons Zach and Alex, gained prominence after Trump's November 2024 election and subsequent deregulation. Binance's involvement extends further: as Zhao sought a pardon earlier in 2025, the exchange directed a $2 billion investment from Abu Dhabi-backed MGX to use Trump's USD1 coin, increasing demand and revenue for the Trump family's reserves, as reported by the Wall Street Journal.
Binance settled a yearslong U.S. investigation in 2023 by paying over $4 billion and addressing protocols that allowed illicit funds from groups like Hamas, Al Qaeda, and the Islamic State to move through its platform. Then-Attorney General Merrick Garland noted that "Binance became the world’s largest cryptocurrency exchange in part because of the crimes it committed."
Trump defended the pardon at an October 23 White House event, telling reporters Zhao was "persecuted by the Biden administration" and that "what he did is not even a crime." The White House denied any quid pro quo, with Leavitt stating on October 30 that "neither the President nor his family have ever engaged, or will ever engage, in conflicts of interest."
Critics highlighted ethical concerns. Sen. Elizabeth Warren (D-Mass.), in a May 5 Senate speech, called the MGX deal "essentially giving Trump a cut of the deal," adding, "The opportunity for corruption is not hypothetical." Sen. Chris Murphy (D-Conn.) posted on X that Binance promoted USD1 "one week after Trump pardoned Binance’s owner (for a stunning array of crimes related to terrorist and sex predator financing)," labeling the White House "a full time, 24/7 corruption machine." Retiring Sen. Thom Tillis (R-N.C.) said, "I don’t like it... He was convicted. He’s not innocent."
Binance responded to criticism, stating on X that listings follow "comprehensive due diligence and legal review" and that the decision was "a business decision... nothing more." Both Trump coins are listed on over 20 other major exchanges. The Trump family reported $864 million in cash profits from crypto in the first half of 2025, part of up to $5 billion in paper gains.