Trump Considers Pardoning Binance Founder CZ Amid Fears of Backlash
According to financial journalist Charles Gasparino, President Donald Trump is reportedly considering a pardon for Changpeng Zhao, the founder and former CEO of Binance. Sources familiar with the matter say discussions at the White House have intensified in recent weeks as Trump’s advisers debated the political and legal implications of such a move.
Changpeng Zhao, commonly known as “CZ,” served a four-month prison sentence earlier this year after pleading guilty in 2023 to violating U.S. anti-money laundering laws. The case, brought during the Biden administration’s broader crackdown on the crypto industry, required Zhao to resign as Binance CEO and pay a $50 million fine. Binance itself was fined $4.3 billion as part of the settlement, one of the largest corporate fines in U.S. history.
Trump Allies Push for CZ’s Pardon, Calling Binance Case ‘Politically Motivated’
According to Gasparino’s report, several Trump allies believe the case against Zhao is “weak” and does not warrant felony charges or prison time. They argue that enforcement actions taken under the previous administration were politically motivated and unfairly targeted crypto companies. A pardon, they say, would symbolize Trump’s willingness to “reshape” Washington’s relationship with the digital asset industry and review what some insiders have called “overreaching” enforcement by Biden-era regulators.
Trump is reportedly inclined to agree to the pardon, but the White House is divided over the optics. Some aides expressed concerns about possible backlash, pointing to the president’s increasing business ties to the crypto sector and the possibility that a pardon could be perceived as favoritism. Others argue that Zhao’s cooperation with law enforcement and lack of prior criminal history support the argument for a pardon.
A Pardon Could Bring CZ Back to the Global Crypto Stage – But Does He Even Want That?
In April 2024, U.S. District Judge Richard Jones sentenced Zhao to four months in prison, much less than the 36 months requested by the Justice Department. Prosecutors had accused Binance of facilitating transactions related to sanctioned countries and illegal activities, but the judge cited Zhao’s cooperation, remorse, and clean record as mitigating factors.
Zhao was released from federal custody on September 27, 2024, two days earlier than scheduled, after serving 116 days. After his release, he stated in interviews that he had no desire to return as Binance CEO, calling his seven-year tenure at the company “a closed chapter.” In an interview in November, he said he was focusing on new ventures in artificial intelligence, biotechnology, and education, including Giggle Academy, a nonprofit initiative aimed at providing free global basic education through gamified blockchain-based learning systems.
Despite stepping down from leadership, Zhao remains Binance’s largest shareholder, reportedly holding a 90% stake in the exchange. His net worth, which rose to an estimated $75 billion, rose sharply after BNB hit a new all-time high in July, coinciding with a rise in the price of Bitcoin to new all-time highs.
Binance continues to operate under CEO Richard Teng, who succeeded Zhao after his resignation. The exchange still faces numerous legal challenges, including an ongoing legal battle with bankrupt crypto firm FTX. In November 2024, FTX sued Binance and Zhao, seeking to recover nearly $1.8 billion in allegedly fraudulent transfers made before FTX collapsed.
If approved, a Trump pardon would clear Zhao’s criminal record and potentially open the door for his formal return to the global crypto scene. While sources close to him said he has moved beyond his Binance chapter, others believe a pardon could restore his ability to participate more freely in regulated markets and corporate affairs.
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