TLDR
- President Donald Trump is considering pardoning Binance founder Changpeng Zhao (CZ), who served four months in prison for anti-money laundering violations
- CZ pleaded guilty in 2023 to violating the Bank Secrecy Act and paid a $50 million fine, while Binance paid $4.3 billion in penalties
- White House aides are divided on the decision due to concerns about regulatory backlash and the optics of favoring crypto
- A pardon would clear CZ’s criminal record but would not allow him to return to a management role at Binance due to separate regulatory agreements
- CZ requested a pardon from Trump in May 2025, and sources say a decision could come soon
President Donald Trump is considering granting a presidential pardon to Changpeng Zhao, the founder of cryptocurrency exchange Binance. Fox Business reported that discussions are ongoing inside the White House about clearing the criminal record of CZ, as he is known in the crypto community.
JUST IN: šŗšø President Trump considers pardoning Binance Founder CZ, Fox Business reports. pic.twitter.com/EH31YEu9ZA
— Watcher.Guru (@WatcherGuru) October 10, 2025
CZ served four months in federal prison after pleading guilty in 2023 to violating the Bank Secrecy Act. The charges stemmed from his failure to maintain proper anti-money laundering controls at Binance. The Department of Justice accused the exchange of allowing transactions that bypassed sanctions and compliance requirements.
As part of his settlement with federal authorities, Zhao stepped down as CEO of Binance. He also paid a $50 million personal fine. The exchange itself paid $4.3 billion in penalties, marking one of the largest corporate fines in US history.
Zhao was released from prison in mid-2024. He has remained outside the United States since his release. The conviction currently bars him from holding executive positions at Binance and limits his access to US financial institutions.
White House Divided on Decision
Senior aides in the Trump administration are split on whether to grant the pardon. Some view CZ’s case as relatively minor compared to other financial crimes. Others worry about potential backlash from regulators and lawmakers who consider the conviction a landmark case in financial crime enforcement.
Fox Business Senior Correspondent Charles Gasparino stated that Trump is “leaning toward” granting the pardon. Sources close to the White House say a decision could come soon. CZ confirmed he requested the pardon from Trump back in May.
A presidential pardon would remove the legal consequences of the conviction. For Zhao, this means erasing the felony from his record and restoring his ability to conduct business in the US. It would also lift restrictions tied to federal background checks and visa applications.
However, a pardon would not reverse the factual basis of the conviction. The pardon also would not override separate regulatory agreements that prevent CZ from managing Binance. These restrictions remain in place for several years regardless of any pardon.
Trump’s Crypto Pardons
Trump has previously pardoned several figures from the cryptocurrency industry. This includes the founders of the BitMEX exchange. The president’s favorable stance toward crypto has been well documented throughout his administration.
If granted, the pardon would allow CZ to re-enter US financial markets. He could potentially serve as an investor, advisor, or founder of new ventures. However, any attempt to return to a management role at Binance would likely trigger renewed regulatory scrutiny.
Binance has experienced growth this year despite CZ’s legal troubles. The exchange’s BNB token has reached all-time high levels. CZ’s personal net worth recently rose to $87 billion.
The Binance Smart Chain has seen increased activity in recent months. DeFi applications, NFT trading, and daily user numbers have all grown. All gas fees on the network are paid in BNB, which has contributed to the token’s price increase.
White House officials have not made a formal announcement about the pardon decision. The debate among Trump’s aides continues as they weigh the legal, political, and regulatory implications. CZ remains barred from the United States while awaiting the president’s decision.
