It finally happened. On October 23, 2025, Donald Trump effectively ended what he calls the "war on crypto" by granting a full and unconditional pardon to Changpeng Zhao, the man everyone knows as "CZ."
If you follow the markets, you know this is huge. If you don't, basically imagine the founder of the world’s biggest bank getting a get-out-of-jail-free card after being labeled a threat to national security.
People are losing their minds over this one. Some see it as a victory for innovation; others see it as the most blatant example of pay-to-play politics we've seen in years. Honestly, the truth probably sits somewhere in the messy middle.
The Reality of the Trump Pardons Binance Founder Move
Let’s get the facts straight first. CZ wasn't in prison when the pardon happened. He’d already served his four-month sentence in a California federal prison and was released in late September 2024. So, why the pardon?
A pardon doesn't just mean you don't have to sit in a cell. It wipes the slate. For a guy like CZ, a felony conviction is a massive wall. It prevents him from running Binance again. It limits where he can travel and what licenses he can hold. By signing that paper, Trump didn't just forgive a crime—he potentially handed CZ back the keys to the $100 billion kingdom he built.
The White House statement was blunt. Press Secretary Karoline Leavitt argued that CZ was "prosecuted by the Biden administration in their war on cryptocurrency." Trump himself, in his classic style, told reporters he didn't really know the guy but heard from "a lot of very good people" that what CZ did wasn't even a crime.
What was the actual "crime"?
In 2023, Binance and CZ pleaded guilty to some pretty heavy stuff. We’re talking about failing to maintain an effective anti-money laundering (AML) program. The Department of Justice (DOJ) was furious because, for years, Binance essentially let anyone trade—including people from Iran, Cuba, and Syria. The DOJ even pointed to transactions linked to Hamas and ISIS.
CZ admitted he messed up. "I failed here," he told a Seattle judge. He paid a $50 million personal fine, and Binance coughed up a staggering $4.3 billion.
The World Liberty Financial Connection
Here is where things get kinda spicy. You can't talk about Trump pardons Binance founder details without talking about World Liberty Financial (WLF). That’s the Trump family’s crypto venture launched by Don Jr., Eric, and the President himself.
Earlier in 2025, reports started surfacing that Binance was doing more than just being a "fan" of the project. According to sources cited by 60 Minutes, Binance actually donated the software and code that allowed World Liberty Financial to even exist. One source went as far as to say that "without Zhao, the technology doesn't exist."
Then there's the money. A massive $2 billion deal involving an Emirati investment fund was settled using USD1—the stablecoin issued by Trump’s company. This single move turned a struggling family project into a legitimate global player overnight.
Critics like Senator Elizabeth Warren aren't buying the "fairness and justice" angle. She’s called it "brazen corruption," suggesting the pardon was a direct reward for the technical and financial support CZ provided to the Trump family's business.
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Is CZ Coming Back to Binance?
This is the billion-dollar question. Before the pardon, CZ was legally barred from managing Binance as part of his plea deal. Now? The legal experts are still arguing.
While the pardon clears his U.S. criminal record, Binance is still under a three-year "independent compliance monitor" as part of its corporate settlement. Basically, there’s a government-approved watchdog living inside Binance’s servers until 2027.
But CZ is already making moves. He changed his X profile back to "Binance" recently. His hand-picked successor, Richard Teng, praised the pardon as a "sea change."
Why the Crypto Industry is Celebrating
To the "crypto bros," this isn't about corruption. It's about a reset. For four years, the SEC and the DOJ went after crypto firms with a sledgehammer. By pardoning CZ—and Ross Ulbricht of Silk Road, and the founders of BitMEX—Trump is sending a signal: the era of enforcement is over.
The markets reacted exactly how you'd expect. BNB (Binance Coin) saw a massive spike, and the broader sentiment is that the U.S. is now the "crypto capital of the world," just like Trump promised on the campaign trail.
What critics get wrong
Many people think this is just about helping a billionaire. But from a policy perspective, the Trump administration argues that the previous "regulation by enforcement" was driving innovation to Dubai and Singapore. CZ is now a dual citizen of the UAE. By pardoning him, the administration is trying to pull that influence (and tax revenue) back to American soil.
Actionable Insights for Investors and Observers
If you’re trying to navigate this new landscape, don't just look at the headlines. Look at the mechanics.
- Watch the Monitor: Even with a pardon, Binance is under federal supervision. If the court-appointed monitor reports new violations, the pardon won't protect the company from new fines.
- Token Ties: Keep an eye on World Liberty Financial’s USD1 stablecoin. Its success is now inextricably linked to Binance’s liquidity. If one wavers, the other likely follows.
- Regulatory Shift: Expect a wave of new legislation in 2026. With the pardon power being used this aggressively, Congress is under pressure to actually define the rules so the President doesn't have to keep "fixing" things with his pen.
The move to pardon the Binance founder will be debated for decades. It's a mix of high-stakes finance, family business, and a total shift in how America views digital money. Whether you love it or hate it, the "War on Crypto" really is over, and the "Wild West" might just be coming back.
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To stay ahead of how these political shifts affect the market, you should monitor the SEC's upcoming filings regarding the dissolution of their remaining "unregistered exchange" lawsuits against other major platforms. Also, track the integration of USD1 into major global exchanges, as this will be the clearest indicator of how deep the ties between the administration and the industry truly run.