Trump’s Surprise Pardon of Binance’s CZ Triggers Mixed Emotions

Trump grants full pardon to Binance founder CZ, ending his legal troubles. It also sparked fierce debate across the crypto industry.

Binance founder Changpeng “CZ” Zhao is once again a free man, thanks to an unexpected move from the Oval Office. Former U.S. President Donald Trump has reportedly granted a full pardon to the embattled crypto titan, according to a Wall Street Journal report citing sources familiar with the matter.

The pardon was allegedly signed on Wednesday, but no official announcement has yet been published on the White House website or in the Federal Register, where presidential pardons are typically recorded.

CZ’s Legal Troubles Ends with a Signature

CZ’s legal troubles began in late 2023, when he pleaded guilty to violating the Bank Secrecy Act after Binance failed to implement an adequate Anti-Money Laundering (AML) program. The Department of Justice accused the exchange of turning a blind eye to illicit financial activity and money laundering on a massive scale.

In April 2024, Zhao was sentenced to four months in prison, a term widely seen as lenient given the scale of the charges. He was released in September after serving his sentence, and had been largely quiet in the public eye since.

It Was a Controversial Pardon

Trump’s decision to pardon Zhao may mark one of the most controversial moments of his post-presidency political career. The move follows months of heavy lobbying by Binance executives, crypto advocacy groups, and several political allies aligned with the pro-crypto faction of the GOP.

While details remain scarce, sources close to the matter say the pardon was framed around Zhao’s cooperation with U.S. authorities and the broader geopolitical importance of keeping crypto innovation anchored in the U.S. rather than China or the Middle East.

The pardon may also serve a broader narrative for Trump, who has increasingly aligned himself with the crypto community, positioning digital assets as an alternative to what he calls “Biden’s broken banking system.”

The crypto industry reacted swiftly, with mixed emotions. Some hailed the move as a win for innovation and global entrepreneurship. Others warned it could set a troubling precedent for regulatory accountability in the space.

CZ has not issued an official statement yet.

Investors can track the prices of their favorite cryptos on the TipRanks Cryptocurrency Center. Click on the image below to find out more.