In a significant development in the cryptocurrency landscape, former President Donald Trump has issued a presidential pardon to Changpeng Zhao, the billionaire founder of Binance, considered the largest cryptocurrency exchange in the world. The announcement was reported by the Wall Street Journal and has garnered attention for its implications on both Zhao’s future and the broader crypto industry in the U.S.
White House press secretary Karoline Leavitt confirmed the pardon, which she stated was a response to Zhao’s prosecution by the Biden Administration amidst its crackdown on cryptocurrency. “President Trump exercised his constitutional authority by issuing a pardon for Mr. Zhao,” Leavitt emphasized in her statement to Yahoo Finance, adding that this marks the end of the Biden Administration’s “war on crypto.”
Zhao, who expressed gratitude for the pardon in a post on X, stated his intention to contribute to making the United States a leading hub for cryptocurrency innovation. This development comes on the heels of Binance’s strategic business collaboration with World Liberty Financial—an entity connected to the Trump family—which has further entwined Trump’s ties with the crypto sector.
Following the news of the pardon, Binance’s cryptocurrency, BNB, saw a notable increase, jumping 6%. The timing of Zhao’s pardon is significant as it follows Binance’s guilty plea in November 2023 to serious charges, including money laundering and violating financial sanctions related to financing for Hamas, a designated terrorist organization. This legal battle culminated in a record $4.3 billion fine for the exchange, along with strict regulatory oversight. Zhao himself had previously served a four-month prison sentence related to these issues and was released in September of the previous year.
Trump’s commitment to positioning America as the “crypto capital of the planet” has been apparent in his early tenure as president. He has implemented regulation that is seen as favorable to the crypto industry—this includes appointing officials conducive to crypto activities and advocating for legislation that would promote digital assets. Further, Trump has enacted two executive orders aimed at streamlining regulations for the crypto field and crafting a federal framework for dollar-pegged stablecoins.
The ties between Trump and Zhao were further emphasized by a recent $2 billion investment by Abu Dhabi-based MGX into Binance, facilitated through the stablecoin of World Liberty Financial, which is directly associated with Trump’s family. World Liberty, launched in 2024, lists Trump’s sons among its co-founders, with the company spearheaded by Zach Witkoff, the son of real estate developer Steven Witkoff, who also has senior connections to Trump’s administration.
However, Trump’s pardon of Zhao has drawn criticism from various quarters. Senator Elizabeth Warren, a prominent critic of both Trump and the cryptocurrency industry, labeled the decision an act of “corruption” and indicative of “lawlessness.”
As the cryptocurrency market continues to evolve, the implications of this pardon will be closely monitored by investors, regulators, and industry stakeholders alike.
