Journalist
Hassan Shittu
Journalist
Hassan Shittu
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President Donald Trump is reportedly considering granting a pardon to Changpeng Zhao, the founder and former CEO of Binance, according to financial journalist Charles Gasparino.
Sources familiar with the matter say discussions inside the White House have intensified in recent weeks, as Trump’s advisers debate the political and legal implications of such a move.
Trump Allies Push for CZ Pardon, Calling Binance Case ‘Politically Motivated’
Changpeng Zhao, known widely 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 step down 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 penalties in U.S. history.
According to Gasparino’s report, several Trump allies believe the case against Zhao was “weak” and did not warrant felony charges or prison time.
They argue that the enforcement actions taken under the previous administration were politically motivated and unfairly targeted crypto businesses.
A pardon, they say, would symbolize Trump’s willingness to “reset” Washington’s relationship with the digital asset industry and review what some insiders describe as “overreaching” enforcement by Biden-era regulators.
Trump is reportedly inclined to approve the pardon, but the White House is divided on the optics.
Some aides have raised concerns about potential backlash, noting the president’s expanding 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 strengthen the case for clemency.
Zhao’s case became one of the most high-profile legal actions in crypto history. In November 2023, he admitted in a Seattle federal court to failing to implement an effective anti-money laundering program at Binance, in violation of the Bank Secrecy Act.
The plea deal allowed him to retain majority ownership of Binance while stepping down from his executive role.
A Pardon Could Bring CZ Back to the Global Crypto Stage — But Does He Even Want It?
In April 2024, U.S. District Judge Richard Jones sentenced Zhao to four months in prison, far lighter than the 36 months sought by the Department of Justice.
Prosecutors had accused Binance of facilitating transactions linked to sanctioned countries and illicit activity, 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. Following his release, he indicated in interviews that he had no desire to return as Binance’s CEO, calling his seven-year tenure at the company “a closed chapter.”
In a November interview, he said he was focused 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 back from leadership, Zhao remains Binance’s largest shareholder, reportedly holding a 90% stake in the exchange.
His net worth, which surged to an estimated $75 billion, rose sharply following BNB’s breakthrough to a new all-time high in July, which coincided with a surge in Bitcoin’s price to new all-time highs.
Binance continues to operate under CEO Richard Teng, who succeeded Zhao following his resignation. The exchange still faces multiple legal challenges, including ongoing litigation 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’s collapse.
The lawsuit claims that Binance’s 2021 share repurchase deal with FTX was funded using misappropriated customer assets. Binance has denied the allegations, calling the claims “meritless.”
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 have said he has moved beyond his Binance chapter, others believe a pardon could restore his ability to engage more freely in regulated markets and corporate affairs.
As discussions continue inside the White House, the timing of any official decision remains uncertain.
Gasparino noted that presidential pardons often take longer than expected, especially amid competing foreign policy and economic priorities.
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