On October 23, 2025, US President Donald Trump pardoned Changpeng Zhao (CZ), the founder of the cryptocurrency exchange Binance. This brought an end to a two-year legal saga, culminating in four months of imprisonment for Zhao. The pardon marks a significant shift in US approach to cryptocurrency regulation and has sparked debates across political and financial circles.
The case drew attention due to clear conflicts of interest: crypto businesses have strong ties with the Trump family, and Binance spent over $450,000 lobbying for the pardon. Critics called this an example of high-level corruption, while supporters argued it ends the Biden administration’s crackdown on crypto and ushers in a new era of innovation.
CZ is a 48-year-old Chinese-Canadian entrepreneur with UAE citizenship, who founded Binance in 2017. At the time of his legal trouble, his wealth was estimated at $85–88 billion and he owned about 90% of the company. Binance faced serious accusations, including failures in anti-money laundering, enabling US citizens to transact with sanctioned nations, and facilitating suspicious activities.
The court sentenced Zhao to just four months in federal prison and a $50 million fine. Binance was fined $4.3 billion, one of the largest corporate penalties in US history. Zhao was removed from management and Binance was ordered to exit the US market. Regulators noted the company's delayed cooperation during the investigation.
Officially, Trump’s administration described the pardon as reversing politically motivated persecution by the previous administration. However, analysts highlighted underlying financial links: Binance and new Trump-family crypto projects such as World Liberty Financial have generated billions in revenue. The company lobbied for the pardon for more than a year, and state funds invested through connected stablecoins.
The pardon fits a broader pattern, with high-profile legal leniency correlating with investments in crypto businesses tied to authority. Studies show at least four similar cases in 2025 alone. The trend reflects how crypto is becoming a tool for economic and geopolitical influence, increasingly tied to political interests.
The market responded positively: prices rose and investor optimism rebounded, though experts warn that regulatory trust may erode in the long run. Open questions remain about whether future US policy will support legitimate industry growth or cater primarily to the most powerful players.
Experts call Zhao’s pardon a landmark regulatory event, which may shape the global future of cryptocurrency.
