Trump pardons Changpeng Zhao, Who Helped Launch His Stablecoin

US President Donald Trump has granted a full pardon to Changpeng Zhao (CZ), the billionaire founder of Binance, reigniting controversy over the White House’s deepening ties to the cryptocurrency industry.

Zhao, once the most powerful figure in global crypto, pleaded guilty in November 2023 to violating U.S. anti-money-laundering laws and served a four-month prison sentence in California in 2024.
His company, Binance Holdings Ltd., was fined $4.3 billion, one of the largest penalties in U.S. financial history, after the Department of Justice and Treasury Department found the exchange helped users evade Iranian and Russian sanctions and facilitated transactions linked to Hamas and cybercriminal networks.

Trump’s Decision

Trump’s pardon, announced Thursday night at the White House, followed months of lobbying from Binance executives and pro-crypto groups.
The administration said Zhao’s conviction was part of the “Biden administration’s war on cryptocurrency,” calling the pardon a move to “correct government overreach.”

Zhao, who has been living between Dubai and Singapore, posted on X:

“I am deeply grateful for today’s pardon and to President Trump for upholding America’s commitment to fairness, innovation, and justice.”

Crypto Connections

The pardon comes amid growing scrutiny of Trump’s own crypto ventures.
Binance had previously partnered with World Liberty Financial, a Trump family-linked stablecoin project, reportedly helping launch its USD1 token, which could generate tens of millions in annual revenue.
Zhao’s companies also held discussions with Dominari Holdings, based in Trump Tower, New York, where Trump’s sons sit on the advisory board.

Criticism and Fallout

Senator Elizabeth Warren blasted the decision as “a kind of corruption,” warning of blurred lines between government power and private gain.
Palantir co-founder Joe Lonsdale said Trump was “terribly advised,” claiming it made the administration look complicit in crypto-related fraud.

Meanwhile, financial watchdogs in Washington and London are reportedly reviewing whether the pardon could complicate Binance’s ongoing regulatory settlements.

What’s Next

Zhao is now free to resume financial and crypto activities, but it’s unclear if U.S. regulators will permit him to return to Binance leadership.
The pardon strengthens Trump’s image as a pro-crypto president, following earlier clemency for BitMex founders and Silk Road creator Ross Ulbricht.
Analysts say it could further loosen crypto oversight under the Trump administration, reshaping U.S. digital-asset policy.

Trump’s pardon of Changpeng Zhao blurs the line between political influence and crypto regulation — a move cheered by industry supporters but condemned by critics as a sign of Washington’s growing entanglement with digital money power.ulation, political ethics and the evolving relationship between government and decentralized finance.