U.S. President Donald Trump has granted a full pardon to Binance founder Changpeng Zhao, better known as CZ, who had pleaded guilty to money laundering charges in 2023.
The White House confirmed the development on Thursday, describing it as a move to “end the Biden administration’s political persecution of innovators in the crypto space.”
In a statement, White House press secretary Karoline Leavitt said Trump “exercised his constitutional authority” to pardon Zhao, arguing that his prosecution under Joe Biden’s administration was part of a broader crackdown on digital assets.
She claimed Zhao’s four-month prison sentence was “excessive and politically motivated.”
The pardon follows an intense lobbying effort by Binance executives and crypto advocates who maintained Zhao’s punishment was disproportionate given his cooperation with U.S. authorities.
The decision is expected to pave the way for Binance, the world’s largest cryptocurrency exchange, to resume full operations in the U.S.
Zhao, 47, was sentenced in May 2024 after admitting to failing to maintain an effective anti-money laundering program at Binance.
He stepped down as CEO and agreed to pay a personal fine of $200 million. Binance itself paid over $4 billion in penalties as part of a 2023 settlement over money laundering, unlicensed money transfers, and sanctions violations.
Trump’s pardon adds another layer to his emerging pro-crypto stance as he campaigns to make the U.S. the “crypto capital of the planet.”
His family’s digital finance company, World Liberty Financial, reportedly operates on Binance’s blockchain infrastructure raising questions about potential conflicts of interest.
The Wall Street Journal first reported the pardon, which marks a major turnaround for Zhao, who had been banned from leading any regulated U.S. financial entity.
Zhao, who relocated to the United Arab Emirates after his conviction, expressed gratitude on X (formerly Twitter), writing, “Freedom restored.
Thank you, Mr. President. The future of crypto belongs to those who build.”
Trump’s decision has sparked divided reactions in Washington with Republican lawmakers praising it as pro-innovation, while Democrats accuse him of using presidential power to reward wealthy allies.
