Donald Trump's Pardon Decision for CZ and Its Impact on Cryptocurrency Markets

U.S. President Donald Trump signed a pardon for Binance founder Changpeng "CZ" Zhao, creating a significant impact in the crypto markets and Washington. This decision signals the end of the previous Biden administration's harsh stance toward cryptocurrency. White House spokesperson Karoline Leavitt stated that Trump exercised his constitutional authority to pardon Zhao, saying, "We are ending the Biden administration's anti-crypto war. Zhao was targeted for political reasons despite the absence of any fraud allegations or victims," she said.

In statements to reporters, Trump expressed that he did not personally know Zhao but that many believed in his innocence. "According to what they told me, what he did wasn’t even a crime. I approved the pardon based on the advice of very good people," Trump emphasized, noting that this pardon invalidated anti-crypto policies. Zhao thanked Trump in a post on X (Twitter), stating, "We will do our best to make America the crypto capital."

CZ's past legal processes are also noteworthy. In November 2023, Zhao pleaded guilty to violating the Bank Secrecy Act, resigned as CEO of Binance, and agreed to pay a $50 million fine. The company, under an agreement with the U.S. Department of Justice, signed one of the largest corporate settlements in history by agreeing to pay $4.3 billion. Zhao completed a four-month prison sentence in early 2024 and was released. However, due to the agreement, there was a lifetime ban from Binance management. Trump's pardon brought the possibility of lifting that ban and Zhao's return into question.

Democratic Senator Elizabeth Warren reacted harshly to Trump's decision, stating, "Zhao first admitted to money laundering, then supported Trump’s crypto initiatives, and now he has received his reward. If Congress does not stop this cycle of corruption, it will be complicit in crime." Warren, who had been critical of cryptocurrency during the Biden administration, called Trump's decision "political and dangerous."

The Wall Street Journal reported that World Liberty Financial, a DeFi project backed by Trump, was in talks to purchase shares on Binance.US in early 2025. Both parties denied these claims as "politically motivated and baseless." Later, Abu Dhabi-based investment firm MGX partnered with Binance, using World Liberty’s USD1 stablecoin to invest $2 billion.

Trump's decision is viewed as a significant shift in the U.S. approach to cryptocurrency, not just for CZ but in general. Experts suggest that this move signals a rapid acceleration of crypto-friendly policies in the U.S. and that new regulations will be dealt with in a softer framework. Following the news, Binance's native token BNB quickly gained 5%. Analysts are commenting, "The crypto market may regain strength during the Trump era."