US President Donald Trump has granted a pardon to Binance co-founder Changpeng “CZ” Zhao, the White House announced on Thursday, accusing former President Joe Biden of waging an unnecessary “war” against the cryptocurrency industry.
Founded in 2017, Binance quickly became the world’s largest cryptocurrency exchange by trading volume, making Zhao a billionaire. However, following a federal investigation into the company’s operations, Zhao pleaded guilty in late 2023 to breaching US anti-money-laundering laws and served a four-month prison term in 2024.
White House Criticises Zhao’s Prosecution
Zhao’s pardon clears his criminal record and could open the door for Binance’s return to the United States, nearly two years after the exchange suspended its American operations as part of a settlement with the Department of Justice.
“In its eagerness to punish the cryptocurrency industry, the Biden administration targeted Mr Zhao despite the absence of any fraud allegations or identifiable victims,” the White House said in a statement shared with AFP.
It added that the Biden administration’s decision to prosecute Zhao and seek a three-year sentence had “seriously damaged the United States’ reputation as a global leader in technology and innovation,” declaring that the “war on crypto” was now over.
According to The Wall Street Journal, Binance had been lobbying for Zhao’s pardon for almost a year. The company is also reported to be a “key supporter” of the Trump family’s cryptocurrency venture, World Liberty Financial.
Although Zhao stepped down as Binance’s chief executive in 2023, he remains the company’s majority shareholder.
Democratic lawmakers swiftly condemned Trump’s decision. Massachusetts Senator Elizabeth Warren wrote on X, “CZ pleaded guilty to a money laundering charge and was sentenced to prison. Then he financed President Trump’s stablecoin and lobbied for a pardon. Today, he got it. If Congress fails to act against this kind of corruption, it will share the blame.”
Since launching his presidential campaign, Trump has become an outspoken advocate for the cryptocurrency industry, reversing his earlier criticism. He has rolled back several regulatory measures imposed under Biden and received over $100 million in campaign contributions from crypto firms.
According to a Financial Times investigation, the Trump family’s crypto ventures have generated around $1 billion in pre-tax profits over the past year.
Trump’s pardon of Zhao follows a string of other controversial clemency decisions, including a blanket pardon for individuals convicted of violence during the 6 January 2021 Capitol riots and the commutation of former Republican lawmaker George Santos’ sentence for wire fraud and identity theft.