President Trump has granted a full pardon to Changpeng Zhao, the billionaire founder and former chief executive of the cryptocurrency exchange Binance. The decision, announced Thursday, nullifies Mr. Zhao's 2023 conviction for failing to prevent money laundering on the platform.
The move effectively erases one of the most significant legal actions taken by the U.S. government against a major figure in the digital asset industry. Mr. Zhao had already completed a four-month federal prison sentence related to the charges.
Key Takeaways
- President Trump has issued a pardon for Binance founder Changpeng Zhao.
- The pardon overturns a 2023 conviction for money-laundering violations.
- Zhao had previously pleaded guilty and served a four-month prison sentence.
- The White House has framed the decision as the end of the "Biden Administration's war on crypto."
Details of the Presidential Pardon
The pardon was confirmed in a statement released by the White House on October 23, 2025. It absolves Changpeng Zhao of his federal conviction, restoring his civil liberties. The action follows a yearslong investigation into Binance by multiple U.S. financial regulators and federal prosecutors.
Mr. Zhao, often known by his initials 'CZ', stepped down as CEO of Binance as part of his plea agreement in November 2023. The exchange itself also pleaded guilty to related charges and agreed to pay substantial fines. The pardon applies only to Mr. Zhao personally and does not alter the corporate settlement.
Background on the Binance Case
In 2023, the U.S. Department of Justice concluded a multi-year investigation into Binance. The exchange was found to have violated the Bank Secrecy Act by failing to implement an effective anti-money laundering program. Prosecutors detailed how these failures allowed illicit actors, including terrorist organizations and criminals, to move funds through the platform. Changpeng Zhao pleaded guilty to one count of failing to maintain an effective anti-money laundering program.
White House Cites End of 'War on Crypto'
The administration presented the pardon as a significant policy shift regarding the digital asset industry. The decision was positioned as a definitive move away from the regulatory approach of the previous administration.
In a formal statement, the White House elaborated on the president's reasoning.
"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 Biden Administration’s war on crypto is over."
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This statement signals a more favorable stance towards the cryptocurrency sector, a theme that has been gaining traction in political circles. The pardon is the most concrete action taken to date to back up this rhetoric.
A Landmark Case Revisited
The original case against Binance and Zhao was a landmark moment for U.S. regulators. It represented a concerted effort to bring the world's largest cryptocurrency exchange in line with American financial laws. The investigation revealed that Binance processed transactions for sanctioned entities and failed to report thousands of suspicious activities.
Binance by the Numbers
At the time of the 2023 settlement, Binance was the largest cryptocurrency exchange globally by trading volume, a position it had held for several years. The case against it was seen as a critical test of the U.S. government's ability to police the international and often opaque world of digital finance.
The 2023 Plea Agreement
As part of the resolution, Mr. Zhao personally paid a significant fine and agreed to step away from managing the company he founded. The plea deal was intended to allow Binance to continue operating while under stricter compliance monitoring. Mr. Zhao began serving his four-month sentence in a low-security federal prison and was released prior to the pardon announcement.
The successful prosecution was previously hailed by the Department of Justice as a victory for national security and a clear message to the crypto industry that no entity was above the law.
Implications for the Crypto Industry
The pardon is expected to send shockwaves through both the financial and technology sectors. For crypto advocates, it may be seen as a validation of their calls for a less adversarial regulatory environment. They argue that strict enforcement can stifle innovation and push businesses overseas.
Conversely, critics of the industry are likely to view the decision as a setback for consumer protection and efforts to combat illicit finance. They may argue that it undermines the authority of regulatory bodies and creates a perception that influential figures can evade accountability.
- Regulatory Signal: The pardon could signal a rollback of enforcement actions initiated under the previous administration.
- Market Reaction: The crypto markets may react positively to what is perceived as a more industry-friendly White House.
- Future of Binance: While the pardon is personal to Zhao, it could influence the future trajectory and regulatory relationships of Binance.
The long-term effects on U.S. crypto policy remain to be seen. However, this pardon marks a clear and decisive break from the past, setting a new tone for the relationship between Washington and the rapidly evolving world of digital assets.
