U.S. President Donald Trump has granted a full pardon to Changpeng “CZ” Zhao, the billionaire founder of Binance, the world’s largest cryptocurrency exchange. The decision, announced late Wednesday, nullifies Zhao’s 2023 conviction for anti-money laundering violations, sparking a firestorm of reactions from global financial markets, regulators, and crypto advocates. The pardon, framed by the White House as a stand against the “war on crypto,” underscores the growing geopolitical fault lines over digital currency regulation.
Zhao, a Chinese-Canadian entrepreneur, pleaded guilty in November 2023 to failing to implement an effective anti-money laundering program at Binance, violating U.S. Bank Secrecy Act provisions. The U.S. Department of Justice accused the platform of enabling over $13 billion in illicit transactions, including trades involving sanctioned nations like Iran, North Korea, and Syria, as well as users linked to terrorist financing and ransomware. As part of a historic $4.3 billion settlement, Zhao stepped down as CEO, paid a $50 million fine, and served a four-month prison sentence, concluding in September 2024.
The White House defended the pardon as a corrective to the Biden administration’s “overreach” in targeting cryptocurrency innovators. “President Trump is committed to making America the global leader in digital assets,” said Press Secretary Karoline Leavitt. “This pardon frees Mr. Zhao to contribute to that vision without undue punishment.” The move aligns with Trump’s broader deregulation agenda, including executive orders to loosen U.S. Securities and Exchange Commission oversight of crypto markets and his family’s reported $4.5 billion venture, World Liberty Financial, which has partnered with Binance.
Global Reactions: Applause and Alarm
The pardon has reverberated across international markets and regulatory bodies. In Asia, where Binance commands a massive user base, crypto traders celebrated the news, driving a 6.4% surge in BNB, Binance’s native token, to $1,146.91, with related altcoins like Aster gaining 8%. Singapore-based crypto analyst Vijay Ayyar called it a “game-changer,” arguing that Zhao’s release from legal constraints could accelerate Binance’s expansion in emerging markets like Southeast Asia and the Middle East.
However, regulators in Europe and North America expressed dismay. The European Union’s Financial Action Task Force (FATF), which sets global anti-money laundering standards, issued a statement warning that pardons for financial crimes risk “undermining international efforts to combat illicit finance flows.” A senior official at France’s Autorité des Marchés Financiers (AMF) told Reuters that the decision could embolden crypto platforms to flout sanctions, particularly in jurisdictions with weaker oversight.
In the United Kingdom, where Binance faced a 2021 ban from the Financial Conduct Authority for operating without proper authorization, policymakers raised concerns about transatlantic regulatory misalignment. “This sends a dangerous signal that major players can evade accountability,” said a Labour MP on condition of anonymity, citing fears of strained U.S.-U.K. financial cooperation.
A Political and Financial Flashpoint
The pardon’s timing has fueled speculation about political motives. Sources familiar with the matter, first reported by The Wall Street Journal, suggest Zhao’s legal team lobbied Trump’s inner circle for months, leveraging donations to pro-crypto causes aligned with the president’s agenda. Critics, including U.S. Senator Elizabeth Warren, labeled the move a “blatant conflict of interest,” pointing to the Trump family’s financial ties to Binance through World Liberty Financial. “This isn’t about innovation—it’s about rewarding allies in an unregulated industry,” Warren said in a fiery Senate floor speech.
Zhao’s case is not an isolated one. Trump previously pardoned executives from BitMEX, another crypto exchange, and a Nikola Corp. official convicted of securities fraud, signaling a pattern of clemency for figures in the digital asset and tech sectors. These actions have bolstered Trump’s popularity among crypto enthusiasts but drawn scrutiny from global watchdogs like the International Monetary Fund, which warned of “systemic risks” if crypto platforms operate without robust oversight.
Binance and Zhao’s Next Moves
Now free of U.S. legal restrictions, Zhao is expected to deepen his influence in the crypto sector. From his base in the UAE, where Binance secured a full operating license in 2024, Zhao has signaled plans to expand through his venture capital firm, Yzi Labs, and potentially re-enter the U.S. market. In a post on X, Zhao wrote, “Grateful for second chances. Focused on building a decentralized future.” Binance, under new CEO Richard Teng, declined to comment but issued a statement reaffirming its commitment to global compliance.
The pardon has intensified debates over the future of cryptocurrency regulation. Supporters argue it signals a new era of innovation, particularly in jurisdictions like Dubai and Singapore, which are vying to become crypto hubs. Detractors, however, fear it could destabilize efforts to curb illicit finance, especially as global tensions rise over sanctions evasion and cybercrime.
As the U.S. positions itself as a crypto-friendly superpower under Trump’s second term, the world watches closely. Zhao’s next steps—and the ripple effects of his pardon—may redefine the delicate balance between innovation and accountability in the global financial system.