It happened fast. One minute, the crypto world was buzzing about the usual price swings, and the next, a massive legal bombshell dropped from the White House. On October 23, 2025, President Donald Trump officially issued a full and unconditional pardon for Changpeng Zhao, the billionaire founder of Binance better known as "CZ."
Honestly, if you’ve been following the intersection of Washington and crypto, this felt like the finale of a very expensive drama. CZ had already served his four-month prison sentence in a California low-security facility. He was out. He was technically a free man. But the pardon changed everything. It didn't just wipe a record; it basically signaled that the U.S. government's "war on crypto"—as the Trump administration likes to call it—was officially over.
The Reality Behind the Trump Pardons Convicted Binance Founder Headline
When news broke that Trump pardons convicted Binance founder, the internet went into a bit of a tailspin. To understand why this matters, you have to look at what CZ actually did. Back in late 2023, Zhao pleaded guilty to failing to maintain an effective anti-money laundering (AML) program at Binance.
The DOJ wasn't playing around. They hit Binance with a $4.3 billion fine—one of the largest corporate penalties in American history. Prosecutors argued that Binance basically rolled out the red carpet for "bad actors," including terrorist groups like Hamas and Al-Qaeda, because the platform didn't have the right "Know Your Customer" (KYC) protocols in place.
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Trump’s take? He called the whole prosecution a "Biden witch hunt." During a 60 Minutes interview, Trump admitted he didn't really know CZ personally but said, "I’ve been told he had a lot of support... what he did is not even a crime."
Why the timing raised so many eyebrows
People aren't just talking about the pardon; they're talking about the money. There’s no way to sugarcoat this: the ties between Binance and the Trump family's own crypto venture, World Liberty Financial, are deep.
Reports from the Wall Street Journal and other outlets suggest that Binance provided the actual technical "guts" for World Liberty Financial. Some sources even claimed that without Zhao’s software, the Trump family's project wouldn't even exist. Then you have the $2 billion stake that an Emirati fund (where CZ has huge ties) took in Binance, while keeping that money deposited in World Liberty.
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- The Conflict: Critics like Senator Elizabeth Warren called it a "reward" for political and financial support.
- The Defense: White House Press Secretary Karoline Leavitt insisted the pardon was about "fairness and innovation," claiming the Biden administration just wanted to punish the industry.
The Ross Ulbricht and BitMEX Connection
CZ wasn't the first. Trump had already cleared the decks for Ross Ulbricht, the Silk Road founder, earlier in 2025. He also pardoned the co-founders of BitMEX who were in a similar legal boat for Bank Secrecy Act violations.
It’s a pattern. By clearing CZ, the administration essentially told the world that the U.S. is now a "safe haven" for crypto founders, even those who have run afoul of the old-school banking laws.
What Happens to Binance Now?
Even with a pardon, things aren't "back to normal" in the way you might think. While the pardon wipes CZ's personal criminal record, Binance as a company is still under a microscope.
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Part of that massive $4 billion settlement involved a three-year independent compliance monitor. That monitor has a "kill switch" over certain operations. Does the pardon remove the monitor? Not exactly. The pardon applies to the individual, not the corporate settlement. However, with a pro-crypto administration in power, many expect the SEC—now under new leadership—to drop the remaining civil lawsuits against the exchange.
The "Capital of Crypto" Ambition
Zhao’s response was pretty measured for a guy who just got a get-out-of-jail-free card (literally). He posted on X (formerly Twitter) about being "deeply grateful" and wanting to help make America the "Capital of Crypto."
For the average investor, this is kinda a big deal. If CZ is allowed to officially return to a leadership role at Binance, it could lead to a massive expansion of Binance.US, which had been struggling under the weight of legal threats. We’re already seeing "USD1," the stablecoin linked to the Trump venture, getting major promotion on the Binance platform.
What You Should Do Next
The landscape of crypto regulation just shifted 180 degrees. If you’re holding assets or trading, keep these points in mind:
- Watch for Regulatory Thaw: Expect the SEC to pull back on "regulation by enforcement." This usually means more tokens getting listed and more liquidity in the U.S. markets.
- Follow the Money: The link between World Liberty Financial and Binance is the new "power axis" in crypto. If you’re looking at market movements, watch how these two entities interact.
- Don't Ignore the Compliance Side: Even if the President is a fan, the Treasury Department still has eyes on money laundering. The rules haven't vanished; they've just become less "punitive" for the big players.
Keep an eye on the independent monitor reports for Binance. If the Trump administration moves to dissolve that oversight early, it’ll be the clearest sign yet that the old rules are officially dead and buried.