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By Dan Gooding and Gabe Whisnant
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President Donald Trump has pardoned Binance founder Changpeng Zhao, who created the world’s largest cryptocurrency exchange and served prison time for failing to prevent criminals from using the platform to move money tied to child exploitation, drug trafficking and terrorism.
Zhao, known as “CZ,” had previously requested a pardon from Trump.
White House press secretary Karoline Leavitt confirmed the news in a statement to Newsweek, saying Zhao had been prosecuted by the Biden administration as part of their "war on cryptocurrency."
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“In their desire to punish the cryptocurrency industry, the Biden Administration pursued Mr. Zhao despite no allegations of fraud or identifiable victims," Leavitt said.
Newsweek reached out to Binance for comment via email.
Why It Matters
Trump has pardoned multiple people since his return to office in January, including those he viewed as having been targeted by former President Joe Biden's Department of Justice for political reasons.
Under the Biden administration, the crypto industry came under increased scrutiny, with the introduction of new regulations and consumer protections, some of which were rolled back in early 2025.
What To Know
Zhao agreed to resign from Binance in November 2023, having pleaded guilty to federal charges. He had been accused of violating the American Bank Secrecy Act by prioritizing his company's growth over compliance with anti-money laundering requirements.
The DOJ had found that the company's platform had failed to stop criminals from using it to move money connected to child sex abuse, drug trafficking, and terrorism.
He was sentenced to four months in prison in April 2024, after prosecutors had sought three years. He was released on September 27, 2024.
Trump signed the pardon on Wednesday, making it the latest in a string of clemencies. The most recent before Zhao's was for former New York Representative George Santos, who had been serving time in prison for wire fraud and aggravated identity theft.
Later Thursday, Trump was asked about the pardon, telling reporters that “a lot of people say that he wasn’t guilty of anything.” Trump said he didn’t believe he’d ever met Zhao, but had “been told” that Zhao “had a lot of support, and they said that what he did is not even a crime.”
Trump said Zhao had been “persecuted by the Biden administration” and added, “I gave him a pardon at the request of a lot of very good people.”
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Who Is Binance Founder Changpeng Zhao?
Zhao is a Canadian national, born in China, who founded Binance in 2017. He grew the company into the world's largest cryptocurrency firm in just eight months.
In the U.S., however, the company was accused of being a major money-laundering operation, with the Department of Justice imposing a $4.3 billion fine and instituting strict monitoring—something that could now end under Trump, per The Wall Street Journal.
Zhao has close ties to World Liberty Financial, a cryptocurrency venture launched in September by Trump and his sons, Eric and Donald Jr. The president's most recent financial disclosure shows he earned more than $57 million last year from the company, which recently introduced USD1, a stablecoin pegged to the U.S. dollar.
World Liberty Financial also announced that a United Arab Emirates investment fund plans to use $2 billion worth of USD1 to buy a stake in Binance.
Following news of Zhao's pardon, Democrats and crypto experts on social media voiced their disappointment, accusing the president of running a pay-to-play pardon scheme.
What Is Changpeng Zhao's Net Worth?
Forbes listed Zhao as the world's 21st richest man as of October 23.
The site lists his net worth at $85.6 billion. That figure has steadily risen since 2023.
What People Are Saying
White House press secretary Karoline Leavitt, in a statement to Newsweek: "The Biden Administration sought to imprison Mr. Zhao for three years, a sentence so outside Sentencing Guidelines that the even the Judge said he had never heard of this in his 30-year career. These actions by the Biden Administration severely damaged the United States’ reputation as a global leader in technology and innovation. The Biden Administration’s war on crypto is over.”
Representative Pramila Jayapal, a Washington Democrat, on X: "Trump’s pardons & embrace of fraudsters—all to support his corruption—is just outrageous. So much for Republicans as the so-called party of 'law and order.' Insurrectionists, fraudsters, criminals—oh my."
Representative Sean Casten, an Illinois Democrat, on X: "Trump got paid. And in exchange, he is rewarding a criminal who will use his new freedom to make every single American less safe. Get furious. I sure as hell am, and wish we had a single Republican who was willing to support ANY oversight."
What Happens Next
It was not immediately clear whether Zhao's pardon would lead Binance to make a stronger return to the U.S., following years of scrutiny.
Update 10/23/25, 12:44 p.m. ET: This article was updated with additional information.
Update 10/23/25, 5:26 p.m. ET: This article was updated with additional information.
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