Trump pardons Binance founder Changpeng Zhao

WASHINGTON- President Donald Trump granted a full pardon to Changpeng Zhao, the founder of Binance, months after the crypto billionaire served his sentence for violating US anti-money laundering laws. The decision expunges Zhao’s criminal record and allows him to resume business activities previously restricted by his conviction.

Zhao, who built Binance into the world’s largest cryptocurrency exchange, pleaded guilty in late 2023 to failing to implement adequate controls that would prevent illegal transactions on the platform. Prosecutors said Binance had been used by criminal groups to move funds linked to narcotics, terrorism and child exploitation.

“I failed here,” Zhao told the court at his sentencing. “I deeply regret my failure and I am sorry.”

A request that has been years in the making

Zhao had asked Trump for clemency earlier this year, arguing that Binance had since adopted global compliance standards and cooperated with US investigators. The request was quietly reviewed by the Justice Department before being approved this week.

The timing of the pardon drew immediate attention to Zhao’s growing proximity to World Liberty Financial, a digital asset company launched in 2024 by Trump and his sons, Eric and Donald Jr. Trump’s financial disclosure reports show he earned more than $57 million from the company last year.

World Liberty Financial introduced a stablecoin called USD1, touted as being backed one-to-one by the US dollar. The company has attracted foreign investors, including a United Arab Emirates-based fund that recently announced plans to use $1 worth $2 billion to buy a stake in Binance.

Political and financial issues

The pardon has reignited debate in Washington over possible conflicts of interest between Trump’s businesses and presidential decisions. Democratic lawmakers have called for transparency about any discussions involving the White House, Binance or World Liberty Financial.

Sen. Elizabeth Warren said in a statement that Congress should examine whether “personal financial relationships influenced the president’s actions.” Several members of the House committee are expected to request internal communications related to the pardon.

Legal experts note that while presidents have broad constitutional power to grant pardons, doing so to people with recent business ties to their private companies is unusual and politically sensitive.

White House statement

Press secretary Karoline Leavitt defended the decision, calling Zhao’s prosecution “politically motivated” and saying there were no “identifiable victims” of his actions. Leavitt said Zhao had “accepted responsibility and helped set new standards for global cryptocurrency compliance.”

The statement also frames the pardon as part of a broader effort to “encourage responsible innovation in digital finance.”

Critics, however, see it as a sign that the Trump administration intends to relax oversight of the cryptocurrency sector.

Industry reaction

Cryptocurrency executives and investors responded with cautious optimism. Some saw the move as a symbolic reset for a sector long frustrated by U.S. law enforcement actions. Others warned that the reprieve could embolden platforms that have struggled to meet regulatory requirements.

A senior lawyer at a major blockchain company said the message was clear: “If Trump returns to the White House, cryptocurrencies will be treated as a business opportunity, not a threat.”

Meanwhile, financial watchdogs argue that the pardon risks undermining years of progress towards transparency in digital asset markets. A former Treasury official described it as “a step backwards that could weaken international cooperation in the fight against money laundering.”

Zhao’s future and Binance’s position

Zhao, 48, remains one of the richest figures in the cryptocurrency world. Although he resigned as CEO of Binance following his conviction, he retains significant ownership in the company and influence within its global operations.

It is not yet clear whether he will return to an active leadership role. In a brief statement after the pardon, Zhao said he was “grateful for the opportunity to contribute again” and planned to “focus on responsible innovation in finance.”

Binance continues to dominate cryptocurrency trading around the world, but remains under scrutiny from regulators in Europe, Asia and the United States.

The political role of cryptocurrencies in Trump’s circle

Trump’s pardon of Changpeng Zhao relates directly to his growing digital currency financial ventures. His company, World Liberty Financial, relies on the same investor networks that helped Binance expand globally. The move suggests a closer alignment between Trump’s business interests and parts of the crypto industry that have rejected US financial oversight.

Several figures connected to World Liberty Financial and Binance have publicly supported Trump’s return to the White House, describing his administration as more open to digital markets. The pardon is likely to deepen those ties, especially as the campaign promotes USD1, Trump’s dollar-pegged stablecoin, as a rival to government-backed digital currencies.

Critics within financial regulatory circles say the decision sends a signal that allies with economic influence can overlook compliance violations. Supporters respond that Zhao’s case showed uneven enforcement by the Biden administration and that Trump’s action restores balance to how crypto companies are treated.

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