Trump Pardons Binance Founder Changpeng Zhao, Ending ‘War on Crypto’

Changpeng Zhao, the founder of Binance, the world’s largest cryptocurrency exchange, has been pardoned by former US President Donald Trump.

Zhao, widely known as "CZ," was sentenced in April 2024 to four months in prison after pleading guilty to violating US money laundering laws. Binance was also ordered to pay $4.3bn (£3.4bn) following a US investigation that found the exchange had helped users bypass sanctions.

White House Press Secretary Karoline Leavitt described Zhao’s prosecution under the Biden administration as part of a “war on cryptocurrency.” She argued that he had been targeted “despite no allegations of fraud or identifiable victim,” and criticised prosecutors for seeking a three-year sentence, saying their actions had “severely damaged the United States' reputation.”

“The Biden Administration's war on crypto is over,” Leavitt declared.

The pardon arrives amid Trump’s increasingly crypto-friendly approach, contrasting with previous administrations. The former President has pledged to make the US the “crypto capital” of the world and even launched his own digital coin shortly before his January inauguration. Since then, he has pushed to create a national cryptocurrency reserve and to allow Americans to use retirement funds for crypto investments.

The Wall Street Journal reported that representatives of the Trump family, which operates the crypto firm World Liberty Financial, recently held talks with Binance. The company has reportedly spent nearly a year lobbying for Zhao’s pardon, who completed his prison sentence in September 2024. Binance has been approached for comment.

Despite these controversies, the Cayman Islands-registered exchange remains the world’s most popular platform for buying and selling cryptocurrencies and other digital assets. Zhao stepped down in November 2023, writing on X that it was “not easy to let go emotionally” but the “right thing to do.” He admitted, “I made mistakes, and I must take responsibility.”

US officials had accused Zhao and Binance of “wilful violations” of US laws, claiming the company had threatened the financial system and national security. Then-Treasury Secretary Janet Yellen said, “Binance turned a blind eye to its legal obligations in the pursuit of profit. Its wilful failures allowed money to flow to terrorists, cybercriminals, and child abusers through its platform.”