U.S. President Donald Trump has pardoned Changpeng “CZ” Zhao, the billionaire founder of Binance, the world’s largest cryptocurrency exchange, sparking a political and financial storm over the White House’s growing ties to digital assets.
The pardon, confirmed on Thursday, drew sharp criticism from opponents who accused Trump of using presidential power to protect his own financial interests. The Trump family’s investments in the crypto industry have expanded rapidly since his return to office in January 2025.
Zhao had served four months in prison after pleading guilty to violating U.S. money laundering laws. Binance also pleaded guilty and paid a USD$4.3-billion-dollar fine following a federal probe that found it allowed users to bypass sanctions.
White House Press Secretary Karoline Leavitt said the case represented what she called the Biden administration’s “war on cryptocurrency.” She said the prosecution was politically motivated and that Trump’s decision corrected a “misuse of justice.” Leavitt also stressed that the case had been “thoroughly reviewed” before the president acted.
According to The Wall Street Journal, Binance spent almost a year lobbying for Zhao’s pardon. The company’s efforts came as Trump promoted a more crypto-friendly agenda, promising to loosen regulations and encourage Americans to invest retirement savings in digital assets. In addition, he has proposed a national cryptocurrency reserve and rolled back measures that previously limited exchange operations in the U.S.
Zhao said on social media that he was deeply thankful for the pardon, which he described as an affirmation of America’s commitment to fairness and innovation. The decision also removes restrictions that had barred him from managing financial ventures. However, it remains unclear whether U.S. regulators will allow him to return to a leadership role at Binance.
Read more: Coinbase bridges autonomous systems and on-chain payments
Read more: HIVE scales Bitcoin mining and AI infrastructure in Paraguay
Questions about conflicts of interest persist
Binance thanked the administration for recognizing Zhao’s “positive contributions to global finance” in a statement. The exchange continues to dominate global crypto trading volumes and remains a key player in digital-asset markets.
Still, questions about conflicts of interest persist. Before the pardon, Zhao’s companies had partnered with Dominari Holdings (NASDAQ: DOMH), a firm based in Trump Tower where Trump’s sons serve on the advisory board. The Wall Street Journal also reported that Trump family representatives had held discussions with Binance about potential collaborations.
The Trump administration has taken similar steps before. Earlier this year. It halted a fraud case against crypto entrepreneur Justin Sun after he invested in World Liberty Financial. Trump also issued pardons for BitMEX founders, who faced money-laundering charges. Furthermore, he pardoned Ross Ulbricht, creator of the Silk Road marketplace known for illegal drug sales.
Palantir Technologies Inc. (NASDAQ: PLTR) co-founder Joe Lonsdale said on social media that he admired Trump but believed the president had been “poorly advised” on recent pardons. He warned that the moves risk making the administration appear surrounded by crypto-related scandals.
Senator Elizabeth Warren called the decision “a form of corruption,” accusing Trump of rewarding political allies in the financial sector.
When asked about Zhao’s pardon on Thursday, Trump appeared momentarily uncertain, asking reporters, “Are you talking about the crypto person?” He later added that he granted the pardon “at the request of many good people.”
