In a significant move utilizing his executive clemency powers, U.S. President Donald Trump has granted a full pardon to Changpeng Zhao, the billionaire founder and former CEO of Binance, the world’s largest cryptocurrency exchange. The pardon absolves Zhao, widely known as “CZ,” of the federal felony conviction he received during the previous administration for failures related to U.S. anti-money laundering (AML) laws.
The pardon, announced by the White House on Thursday, marks a dramatic end to the high-profile legal battle that saw Zhao plead guilty in November 2023 to violating the Bank Secrecy Act. That plea agreement, reached with the Biden administration’s Department of Justice, included Zhao stepping down as CEO of Binance, a $50 million personal fine, and Binance itself paying a historic $4.3 billion in penalties. In April 2024, Zhao was sentenced to four months in federal prison, a term he recently completed.
A presidential pardon grants full forgiveness for a federal crime, effectively erasing the conviction as if it never happened. While it does not expunge the record, it restores rights that may have been lost due to the felony conviction, such as voting or holding certain licenses, and removes the stigma associated with it.
The decision to pardon Zhao is likely to be viewed through multiple lenses. It represents a clear reversal of a major enforcement action taken by the preceding administration against a giant of the cryptocurrency industry. Supporters may see it as a sign of the current administration’s more favorable or pragmatic stance towards the crypto sector, potentially signaling an intent to foster innovation without overly burdensome regulation.
Critics, however, are likely to condemn the move, arguing that it undermines efforts to hold powerful figures accountable for facilitating illicit financial activities. The case against Binance and Zhao centered on allegations that the platform was used for money laundering by terrorist groups, ransomware attackers, and sanctioned nations due to its inadequate AML and “know your customer” (KYC) protocols in its early years.
The White House statement accompanying the pardon did not elaborate extensively on the reasoning but noted Zhao’s acceptance of responsibility and the substantial penalties already paid by both him and Binance. It may also frame the pardon within a broader context of reassessing regulatory actions taken under the previous administration.
This pardon is one of the most high-profile acts of clemency granted in the President’s second term and is certain to reignite debates about the regulation of cryptocurrency, corporate accountability, and the use of presidential pardon power.
