US President Donald Trump has pardoned Changpeng Zhao, the founder of the world’s largest cryptocurrency exchange, Binance, sparking widespread debate over the administration’s growing ties to the crypto industry.
Zhao, widely known as “CZ,” was sentenced to four months in prison in April 2024 after pleading guilty to violating US anti-money laundering laws. Binance also pleaded guilty and paid $4.3 billion following a federal investigation that accused the company of helping users bypass sanctions.
White House Press Secretary Karoline Leavitt defended the move, calling Zhao’s prosecution under the Biden administration part of a “war on cryptocurrency.” She said the president’s decision aimed to correct what she termed an “overreach of the Biden administration’s misjustice.”
Zhao, who completed his prison term in September 2024, expressed gratitude on social media, thanking President Trump for “upholding America’s commitment to fairness, innovation, and justice.” The pardon removes restrictions that had prevented him from running financial ventures, though it remains unclear whether it restores his standing with US regulators.
The decision has drawn sharp criticism, particularly due to the Trump family’s expanding investments in digital assets. Reports suggest that Zhao’s companies had previously collaborated with firms linked to Trump’s family, including Dominari Holdings, where Trump’s sons serve as advisers. The family also operates its own crypto venture, World Liberty Financial.
Critics, including Democratic Senator Elizabeth Warren, labeled the pardon as a “kind of corruption,” arguing it highlights deep conflicts of interest within the administration. Palantir co-founder Joe Lonsdale also questioned the move, warning that it “makes it look like massive fraud is happening around him in this area.”
The pardon aligns with Trump’s broader pro-crypto agenda, which includes easing regulations, establishing a national cryptocurrency reserve, and promoting digital asset investments through retirement accounts.
Despite the controversy, Binance hailed the decision as “incredible news,” reinforcing its position as the world’s most popular platform for cryptocurrency trading.
