Trump Shocks the Crypto World: Pardons Binance Founder CZ After 2023 Conviction
President Donald Trump has granted a full pardon to Binance founder Changpeng Zhao, reversing his 2023 conviction for violating the Bank Secrecy Act. Zhao, commonly known as CZ, was sentenced to four months in prison after pleading guilty to failing to establish sufficient anti-money-laundering controls at the global cryptocurrency exchange.
The pardon, issued on October 23, 2025, follows Binance’s $4.3 billion settlement with U.S. regulators and Zhao’s resignation as CEO. The White House announced the decision during an address outlining new pro-crypto initiatives, including the exploration of a potential U.S. Bitcoin reserve.
In a CNN interview, Trump defended the pardon, stating that the case had been “overly punitive” and that Zhao had already taken responsibility for the exchange’s past compliance failures. Trump also said the decision was influenced by recommendations from advisers and crypto industry leaders who saw Zhao as a key figure in advancing blockchain innovation.
The move has drawn mixed reactions across the political and financial sectors. Supporters argue that the pardon aligns with Trump’s goal of promoting digital asset growth and American competitiveness in the crypto economy. Critics, however, have raised concerns about the optics of the decision, given Binance’s historical ties and ongoing scrutiny regarding potential links to Trump-affiliated crypto projects.
Zhao, who has remained active in the digital asset space, expressed gratitude on X (formerly Twitter), saying he plans to continue supporting global blockchain education and compliance initiatives.
