In a dramatic reversal of Biden-era crypto enforcement, President Donald Trump has officially pardoned Changpeng Zhao (CZ), the convicted founder of cryptocurrency exchange Binance. The move signals a major shift in the White House’s stance on digital assets, drawing praise and criticism across the financial world.
According to Yahoo Finance, CZ pleaded guilty to money laundering charges in April 2024 and served four months in prison. His company, Binance, was fined $4 billion for violating U.S. financial laws.
Trump’s Crypto Pivot: Binance Founder Pardoned
“President Trump exercised his constitutional authority by issuing a pardon to Mr. Zhao,” said White House Press Secretary Karoline Leavitt. The decision comes as Trump rapidly unwinds Biden’s crackdown on crypto firms, which had targeted platforms like Binance, Coinbase, and Ripple.
Notably, Binance was banned in the U.S. in 2019 after allegations of facilitating transactions linked to terror groups such as Hamas and al-Qaeda. Prosecutors claimed Zhao “bet that he would not get caught,” and that the consequences would be minimal.
Crypto Industry Reacts to CZ’s Release
Industry leaders are divided. Some hail the pardon as a win for innovation, while others warn of regulatory backsliding. Binance, still owned by CZ, recently secured a $2 billion investment from Abu Dhabi’s MGX, using a Trump-linked cryptocurrency called USD1.
Meanwhile, Trump’s family has deep ties to crypto. Eric and Donald Jr. helped launch World Liberty Financial, a venture reportedly worth hundreds of millions in paper wealth. Critics argue this creates a conflict of interest, though the White House insists Trump Media is held in a family trust.
Digital Assets Policy: What’s Next?
With Trump embracing crypto despite once calling Bitcoin a “scam against the dollar,” the industry may see looser regulations ahead. Democrat lawmakers continue to raise concerns about transparency and national security.
As the digital currency landscape evolves, CZ’s pardon marks a pivotal moment in the intersection of politics, finance, and technology.
Key Takeaways
- Trump pardoned Binance founder CZ after a 2024 money laundering conviction
- Binance fined $4 billion; CZ served four months in prison
- Trump family’s crypto venture linked to Binance and USD1
- Crypto industry divided over the pardon’s impact
