Donald Trump’s pardon of Changpeng Zhao (aka “CZ”) signals more than
forgiveness, it broadcasts a new era of crypto-friendliness and raises
questions about influence.
The Pardon: A Clean Slate for CZ
Yesterday, the White House announced that President
Trump had granted a full pardon to Changpeng Zhao, CZ, founder of the
mega-exchange Binance.
Zhao had pleaded guilty in 2023 to failing to maintain an effective
anti-money-laundering program. As Reuters noted, “In a statement, White House
press secretary Karoline Leavitt said [Trump] had ‘exercised
his constitutional authority by issuing a pardon for Mr Zhao, who was
prosecuted by the Biden Administration in their war on cryptocurrency.’”
Binance paid about $4.3 billion to resolve U.S. Justice Department claims.
Zhao also personally served nearly four months in prison. In his post-pardon
remarks, Zhao wrote: “Deeply grateful … to President Trump … Will do everything
we can to help make America the Capital of Crypto.”
Binance co-founder Changpeng Zhao has received a pardon from President Donald Trump after he went to jail for failing to safeguard the world’s largest crypto exchange against money laundering https://t.co/dpQnCmiwBu
— Bloomberg (@business) October 23, 2025
Trump’s Crypto Narrative: What He’s Saying and Why
Trump frames the pardon as a correction of regulatory overreach. The
White House line: Zhao was targeted unfairly, the previous administration was
hostile to crypto, and now the “war
on crypto is over.” This plays well with a key audience: cryptocurrency
firms, digital-asset investors and business allies who felt under siege.
The pardon fits into a broader trend of Trump granting clemency to
high-profile business figures. Earlier in 2025, he pardoned the founders of
crypto exchange BitMEX, who faced anti-money-laundering charges, and Nikola’s
founder, convicted of fraud. He also commuted the sentence of a former
executive from the defunct media company Ozy Media.
But there’s a second layer: the connections between Zhao, Binance and
Trump’s own crypto-adjacent ventures. The Wall Street Journal reported that Trump’s
own crypto initiatives were being administered by Binance.
Bottom line: it’s not only a pardon, it’s a policy pivot, packaged with
spectacle and what seems like a case of “You help me, I’ll help you”.
Criticisms of the Pardon
Criticism
of the pardon has been swift and pointed. Senator Elizabeth Warren blasted the
move as evidence of corruption, saying that allowing Changpeng Zhao to receive
a full pardon sends the wrong message about accountability in the crypto
industry. She flagged concerns that the pardon undermines trust in the rule of
law and raises troubling questions about whether the powerful and
well-connected are held to different standards.
Changpeng Zhao is comically corrupt. And he just successfully won a pardon from Trump by boosting the Trump family crypto coin. I mean, this is a months-long scandal in any other normal administration. pic.twitter.com/zMsN8VDZo9
— Isaac Saul (@Ike_Saul) October 23, 2025
What It Might Mean for the Crypto Industry
Opportunity Knocks?
With the conviction removed, Zhao, and by extension Binance, may face
fewer barriers to re-engagement in the U.S. market. The conviction was a major
strategic obstacle. The signal to industry: “We’re open for business, big
business.” The ruling could ease licensing, banking relations and regulatory
friction.
Regulatory Loosening?
The move might foreshadow a lighter touch from regulators. If the top
target gets a pardon, what does that say about policy posture? Crypto firms may
interpret this as a green light to accelerate growth, less wary of enforcement.
Accountability Questions
Of course, the flip side: when a convicted executive gets off, what
does enforcement mean? Critics will ask: Are rules still rules? Or is it now
about who you know? Trust in the system may take a hit if pardons look
selective.
What It Says About Trump’s Strategy
This isn’t just about crypto, it’s about power, alliances and branding.
By pardoning CZ, Trump demonstrates that major business figures can become
allies. He signals to donors and sectors that support him: you align with me, I
align with you. Also, it reinforces his image as unconventional, willing to
overturn conventions. For better or worse.
Tech Valley and its team extend their warmest congratulations to Mr. Changpeng Zhao @cz_binance on receiving a Presidential Pardon from His Excellency President Donald Trump.This milestone marks a historic turning point in the evolution of the digital assets industry restoring… pic.twitter.com/wzHT5ZjZLl
— Tech Valley (@TechValleyUAE) October 23, 2025
What to Watch Next
- A U.S. push: Will Binance roll out new services, re-entry
strategies or major partnerships now that Zhao’s legal cloud is lifted? - Regulator movement: Will this signal a wave of reduced enforcement?
Will other crypto executives assume pardons or leniency is on the table? - Market reaction: Look out for increased volatility in crypto as
participants recalibrate around regulation risk. - Political optics & conflict of interest: Given the overlap of
business, politics and regulation, will critics dig into the timing, the
connections and the precedent? - Federal enforcement doctrine: Is this a one-off gesture or part of a
broader regulatory philosophy shift?
Final Take
The pardon of Changpeng Zhao by President Trump is more than a legal
reset—it’s a power move. It tells the crypto industry: you matter. It tells
regulators: the enforcement era has changed. And it tells observers: business,
politics and innovation are converging in bold, messy ways.
Whether that convergence leads to sustainable growth or unchecked risk
remains to be seen, but one thing’s clear: the rules of the crypto game might
just be changing.
For more stories around the edges of crypto and fintech, visit our Trending pages.
This article was written by Louis Parks at www.financemagnates.com.
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