US President Donald Trump pardoned Changpeng Zhao, the founder of the world’s largest cryptocurrency exchange Binance.
Zhao, commonly known as CZ, pleaded guilty in November 2023 to violating anti-money laundering laws and US sanctions. The allegation was part of a wide-ranging settlement with the U.S. Department of Justice that required Binance to pay a record $4.3 billion fine.
Zhao ultimately spent four months in federal prison. The Justice Department originally asked for a three-year prison sentence.
After granting the pardon, the White House cast Zhao as the victim of a plot to trample the crypto industry led by former President Joe Biden’s administration. Regulators filed a series of lawsuits against high-profile companies during this period, and the Justice Department prosecuted crypto industry figureheads for fraud.
“In an effort to punish the cryptocurrency industry, the Biden administration pursued Mr. Zhao despite no allegations of fraud or identifiable victims,” says White House press secretary Karoline Leavitt. “The Biden administration’s war on cryptocurrencies is over.”
Zhao, who founded Binance in 2017, is something of a legend in cryptoland for his bullish statements and social media talent. Until he pleaded guilty, he routinely used his platform on X to dismiss allegations of irregularities in Binance.
Zhao is the latest in a string of cryptocurrency figureheads pardoned by Trump. The president received support and multi-million donations from industry representatives.
Immediately after returning to office, Trump commuted the prison sentence of Ross Ulbricht, the creator of the Silk Road darknet. In tardy March, Trump pardoned the co-founders of cryptocurrency exchange BitMEX, who pleaded guilty in 2022 to charges related to failing to maintain an adequate anti-money laundering program.
Although Zhao has already served his scheduled prison sentence, the pardon will clear his criminal record of anti-money laundering and sanctions violations.
“I think for him it’s really about clearing his name,” says Patrick Hillmann, who previously worked with Zhao as Binance’s chief strategy officer. “I think this is closure for him.”
A pardon could also open the way for Binance to return to the US market, which it was forced to leave as part of a settlement with the Department of Justice. Binance spent months seeking a pardon for Zhao, who was released from prison in September 2024, The Wall Street Journal previously reported.