US President Donald Trump has pardoned Changpeng Zhao, the founder of the world's largest cryptocurrency exchange Binance, who served four months in prison for anti-money laundering violations. The move, announced on October 23, 2025, draws praise from the crypto industry but criticism over potential conflicts tied to the Trump family's business interests. White House officials framed it as ending the previous administration's 'war on crypto.'
Changpeng Zhao, often known as CZ, pleaded guilty in November 2023 to one count of failing to maintain an effective anti-money laundering program at Binance. As part of the settlement, Binance paid $4.3 billion in fines and forfeiture, and Zhao stepped down as CEO. He was sentenced to four months in prison in April 2024, serving his time until September 2024, becoming the first person imprisoned for such Bank Secrecy Act violations.
On October 23, 2025, President Trump issued the pardon, with White House press secretary Karoline Leavitt stating: “President Trump exercised his constitutional authority by issuing a pardon for Mr Zhao, who was prosecuted by the Biden administration in their war on cryptocurrency. The war on crypto is over.” Trump told reporters he granted the pardon at the request of 'a lot of very good people,' adding, “A lot of people say that he wasn’t guilty of anything... It wasn’t a crime. That he was persecuted by the Biden administration.”
Zhao responded on X: “Deeply grateful for today’s pardon and to President Trump for upholding America’s commitment to fairness, innovation, and justice. Will do everything we can to help make America the Capital of Crypto.” A Binance spokesperson called it “incredible news” and thanked Trump for his leadership in positioning the US as the crypto capital.
The pardon occurs amid close ties between Binance and the Trump family's World Liberty Financial, launched by Donald Trump Jr. and Eric Trump. In May 2025, an Emirati investment fund used $2 billion in World Liberty's USD1 stablecoin to buy a stake in Binance, a deal Zach Witkoff, founder of the Trump-linked venture, hailed as a sign of trust. Binance also hired lobbyist Charles McDowell, a friend of Donald Trump Jr., who was photographed with him at the White House last week. McDowell's firm received $450,000 from Binance for lobbying on 'executive relief' and crypto policy.
Democrats raised concerns about conflicts. Senator Elizabeth Warren stated: “First, Changpeng Zhao pleaded guilty to a criminal money laundering charge. Then he boosted one of Donald Trump’s crypto ventures and lobbied for a pardon. Today, Donald Trump did his part and pardoned him.” A group of Democratic senators, including Warren, had earlier warned of inappropriate political and financial influence. Leavitt dismissed such claims, saying the White House conducted a thorough review and viewed the case as overreach by the Biden administration.
This is Trump's latest crypto-related pardon, following those for BitMEX co-founders in March 2025 and Ross Ulbricht in January 2025, signaling a shift toward lighter regulation of the industry that supported his 2024 campaign.