Trump‘s Pardon of Binance Founder CZ Sends Shockwaves through Crypto Industry
WASHINGTON D.C. - Former President Donald Trump’s recent pardon of Changpeng Zhao, known as “CZ,” the founder of the cryptocurrency exchange Binance, has ignited a firestorm of debate and speculation within the digital asset world.The move, finalized November 30, 2023, dramatically alters the legal landscape for one of the industry’s most prominent figures and signals a perhaps seismic shift in the relationship between cryptocurrency and Washington.
the pardon comes as CZ faced a four-month prison sentence following his November 2023 guilty plea too violating U.S. anti-money laundering laws. While Zhao admitted to failing to maintain an effective anti-money laundering program at Binance, the pardon has fueled accusations of political influence and raised questions about the future of crypto regulation in the United States, especially as Trump seeks a return to the White House. The decision impacts not onyl Binance, the world’s largest cryptocurrency exchange, but also the broader crypto ecosystem, potentially emboldening other companies and individuals facing legal scrutiny.
Binance’s involvement with a digital currency project linked to Trump, USD1, adds another layer of complexity to the situation. Bloomberg reported in July 2025 that Binance developed the codebase for USD1, a project spearheaded by Liberty Financial, which stands to gain tens of millions of dollars from the arrangement.
During a November 2, 2023 interview with 60 Minutes, Trump claimed limited knowledge of Zhao, stating, “I don’t know who he is.” He did, though, acknowledge his sons’ interest in cryptocurrency. “My sons are into [crypto],” Trump said later in the same interview.
Zhao’s legal team and industry supporters have framed the pardon as a justified act of leniency. Teresa Goody guillén, a partner at Baker & hostetler representing Zhao, argued in an X post that “CZ is the first and only known first-time offender in US history to receive a prison sentence for this single, non-fraud-related charge.”
The pardon’s long-term consequences remain to be seen, but industry analysts predict increased lobbying efforts from crypto firms and a potential softening of regulatory enforcement should Trump win the 2024 presidential election. The Justice Department has not commented on the pardon beyond confirming its execution.
