In the ever-evolving realm of cryptocurrency, a fascinating development has emerged: sources have indicated that former President Donald Trump might be contemplating a pardon for Changpeng Zhao, commonly known as “CZ,” the founder and ex-CEO of Binance. Financial journalist Charles Gasparino has brought this potential headline-making news into the limelight, suggesting that discussions within the White House have ramped up in intensity recently. What does this mean for the crypto landscape?
The implications are broad and multifaceted, especially given the backdrop of Zhao’s recent legal troubles. Earlier this year, he faced significant legal issues when he pleaded guilty to violating U.S. anti-money laundering laws, culminating in a four-month prison sentence. In addition to his imprisonment, Zhao was forced to step down from his role at Binance, which was slapped with a staggering $4.3 billion fine, one of the highest corporate penalties in U.S. history. The scrutiny surrounding Zhao’s case has been pivotal, marking it as one of the most high-profile legal actions in crypto’s history, especially during the Biden administration’s crackdown on the industry.
SCOOP: People close to @cz_binance, the former @binance chief who spent some time in the can amid the Biden Admin’s crackdown on all things crypto, say discussions inside the White House are heating up on the possibility of a pardon from @realDonaldTrump. Many Trump insiders… — Charles Gasparino (@CGasparino) October 10, 2025
Trump’s allies have reportedly taken a keen interest in securing a pardon for Zhao, citing the case’s alleged weakness and asserting that the felony charges were politically charged. They argue that these enforcement actions unfairly targeted the cryptocurrency sector, painting a narrative of overreach by regulators during the current administration. If granted, a pardon would not only symbolize a potential pivot in Trump’s strategy toward the cryptocurrency industry but could also signify a fresh start in the fraught relationship between Washington and digital assets.
Despite Trump’s apparent inclination to approve the pardon, the White House is grappling with the optics. Some aides caution against perceptions of favoritism, particularly considering the president’s increasing business ties to the crypto realm. However, Zhao’s willingness to cooperate with law enforcement and his previously clean record are factors being weighed heavily in discussions.
The legal entanglements for Zhao reached a peak during his notable court appearance in November 2023, where he admitted to failing to implement an effective anti-money laundering program at Binance, violating the Bank Secrecy Act. Although prosecutors sought a more severe punishment, citing the company’s role in facilitating questionable transactions, the judge opted for leniency, taking into account Zhao’s cooperation and remorse—leading to a sentence lighter than what many anticipated.
A Seattle courtroom became the stage for a major moment in the cryptocurrency industry as former Binance CEO Changpeng ‘CZ’ Zhao received a four-month prison sentence. https://t.co/WaQvI63Y3O — Cryptonews.com (@cryptonews) April 30, 2024
Following his release from federal custody on September 27, 2024, Zhao made it clear that he had no intention of returning to lead Binance, describing his previous tenure as a “closed chapter.” Instead, he is now channeling his energies into new ventures that include blockchain technology, artificial intelligence, and even a unique non-profit initiative aimed at revolutionizing education through gamified learning systems.
🚨 Former Binance CEO Changpeng Zhao @cz_binance is back — with plans to continue investments in blockchain, AI and biotech after his prison stint. #Blockchain #CZ https://t.co/3lOa0QZ5Pn — Cryptonews.com (@cryptonews.com) September 30, 2024
Although Zhao has shifted his focus, he still retains a substantial stake in Binance, owning approximately 90% of the company. Meanwhile, the exchange itself continues to navigate a turbulent legal environment, including an ongoing lawsuit with FTX. In November 2024, FTX sought nearly $1.8 billion in alleged fraudulent transfers connected to Binance—a claim the company vehemently denies, dismissing it as “meritless.”
🏦 Changpeng “CZ” Zhao has requested the Delaware Bankruptcy Court to dismiss a $1.76 billion recovery lawsuit filed by the FTX trust. #Binance #FTX #ChangpengZhao https://t.co/kUnttIufCw — Cryptonews.com (@cryptonews) August 6, 2025
Should Trump’s potential pardon come to fruition, it could effectively erase Zhao’s criminal record and potentially pave the way for his re-emergence on the global crypto stage. Yet, despite the allure of such an opportunity, insiders close to Zhao suggest that he has moved on and is more interested in new business ventures than returning to the limelight of Binance.
As discussions continue within the corridors of power in Washington, the timeline for a possible announcement remains murky. Gasparino notes that the process for presidential pardons can often extend longer than expected, especially when balanced against the backdrop of pressing foreign policy and economic considerations. Will Zhao receive the second chance that could alter the crypto landscape once more? Only time will tell.
In the ever-changing world of digital currencies, Zhao’s story serves as a stark reminder of the turbulent intersection between regulation and innovation. For enthusiasts and investors alike, the unfolding drama around a potential pardon raises many questions about justice, opportunity, and the future of the crypto marketplace.