In a dramatic clemency decision, U.S. President Donald Trump has pardoned Changpeng Zhao, the founder of Binance, following Zhao’s guilty plea and brief incarceration for failing to maintain an adequate anti-money laundering program at his cryptocurrency exchange. The White House confirmed the pardon on October 23, 2025.
Zhao had admitted in 2023 to one count of violating the U.S. Bank Secrecy Act and was sentenced to four months in prison, a term he completed in September 2024. As part of a broader settlement, Binance also agreed to pay $4.3 billion in fines, and Zhao paid a $50 million personal fine.
The pardon comes amid growing scrutiny over Trump’s ties to the crypto sector. The White House – via Press Secretary Karoline Leavitt defended the move, framing it as a necessary correction to what it called the Biden administration’s “war on cryptocurrency.” The statement also noted that there were “no allegations of fraud or identifiable victims” in Zhao’s case.
Critics have raised concerns about the optics of the decision, citing Zhao’s connections to World Liberty Financial, a crypto venture launched by Trump and his sons, and its involvement in a multibillion-dollar deal with Binance. Senators Elizabeth Warren, Dick Durbin, and Richard Blumenthal previously demanded explanations over potential conflicts of interest.
For Binance and the broader crypto market, the pardon could pave the way for Zhao’s return to active business roles. He had stepped down from the CEO position after the settlement but retains large ownership stakes in the company.
