- Changpeng Zhao, founder of Binance, was sentenced to four months in prison for violating US money laundering laws.
- Trump’s pardon was granted at the request of supporters, claiming Zhao was targeted unfairly.
- The legal case highlighted issues of AML compliance and crypto industry regulation in the US.
- The pardon may influence Binance’s future presence and operations in the United States.
- This event underscores ongoing political debates surrounding cryptocurrency regulation.
In an unprecedented turn of events, Crypto billionaire Changpeng Zhao, the founder of Binance, has been granted a presidential pardon by Donald Trump, overturning past convictions related to US money laundering charges.
This development not only signals a major shift for Zhao and Binance but also underscores ongoing debates surrounding regulatory crackdowns and political influences in the cryptocurrency industry.
Charges Against Changpeng Zhao and Binance’s Legal Troubles
Changpeng Zhao, widely known as CZ, faced serious legal repercussions in the US for allegedly violating anti-money laundering regulations. According to court documents and recent reports, Zhao pleaded guilty in 2023 to failing to maintain an effective anti-money laundering (AML) program, which led to a four-month prison sentence handed down in April 2024. US authorities accused him of neglecting transactions linked to child exploitation, drug trafficking, and terrorism, which drew widespread condemnation.
Previously, Binance itself became the subject of a significant legal crackdown, admitting to engaging in unlicensed money transmission and violations of sanctions laws. The exchange sector faced fines totaling $4.3 billion, with Zhao resigning as CEO in late 2023 amid these allegations. These legal issues painted Zhao as a central figure in the US’s tough stance on cryptocurrency regulation, leading to his conviction and subsequent imprisonment.
Pres. Trump granted clemency to Changpeng Zhao, billionaire founder of cryptocurrency exchange Binance, who pleaded guilty to money laundering in 2023. @jayobtv reports. pic.twitter.com/834TB538yK
— Good Morning America (@GMA) October 24, 2025
The Political Twist: President Trump’s Pardon of Changpeng Zhao
In a surprise move, President Donald Trump officially pardoned Zhao, citing concerns about the “war on cryptocurrency” waged by the Biden administration. White House press secretary Karoline Leavitt stated that the pardon was exercised at the request of influential supporters who believed Zhao was unjustly prosecuted. Trump remarked during a press briefing that he was advised Zhao “was not guilty of anything” and that the charges were overblown, highlighting his belief that the enforcement was politically motivated.
Zhao expressed gratitude through a social media post following the pardon, emphasizing his support for innovation and fairness in the crypto sector. This decision has sparked intense discussion about the future of Binance’s operations in the United States, as well as broader implications for crypto regulation and political influence in tech industries.
The Broader Impact on Cryptocurrency Industry and Regulatory Policies
The pardon signifies a potential turning point in the ongoing clash between crypto advocates and regulators, especially given Zhao’s pivotal role in the sector. His legal troubles and subsequent pardon highlight the complex relationship between government authorities and the cryptocurrency ecosystem, which remains under intense scrutiny.
The event raises questions about whether this move will lead to Binance resuming US operations or if it will further complicate regulatory policies for crypto firms in America.
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Last Updated on October 24, 2025 by 247 News Around The World
