US President Donald Trump announced a pardon for Changpeng "CZ" Zhao, the founder of the largest cryptocurrency exchange Binance, causing a significant response in the crypto community. This move, supported by numerous advocates, signals potential changes in US regulatory policy and may return CZ to an active role in the industry.
On Wednesday, October 22, 2025, President Trump signed a pardon for Zhao, which Binance reported in an official statement to Cointelegraph. At a press conference on October 23, Trump explained that the decision was influenced by "many people" who insisted on CZ's innocence. He emphasized that he does not know Zhao personally, but considers his prosecution by the Biden administration to be unjust. "His actions were not even a crime, it was political pressure," the president stated, criticizing the previous administration.
In 2024, Zhao was sentenced to four months in prison after pleading guilty to one count of violating the US Bank Secrecy Act. The claims involved the insufficient effectiveness of an anti-money laundering (AML) program on the Binance platform. As part of a deal with authorities, he stepped down as CEO and was barred from working for the company. The case exemplified a tough regulatory approach to the crypto industry, causing concern among investors and market participants.
Analysts believe the pardon reflects a shift in US political course toward supporting cryptocurrencies. Following the pardon announcement, the price of BNB token rose by 5%, indicating a positive market reaction anticipating new opportunities for Binance and Web3 projects.
Zhao's lawyer, Teresa Goody Guillen, in a statement on October 23, welcomed the pardon, calling it fair. "The charge was solely about the lack of an effective AML program. There was no fraud, no victims, no evidence of money laundering," she noted. Guillen highlighted the uniqueness of the case: "Zhao became the first in US history to receive a prison sentence for a single violation not related to fraud." The court found no evidence that Zhao was aware of illegal transactions on the platform.
In his first message on platform X after the pardon, Zhao expressed gratitude and announced his intention to "do everything possible to make America the world crypto capital and promote Web3". The pardon removes previously imposed restrictions, opening a path for Zhao to potentially return to Binance. This may strengthen the exchange's position in competition with other platforms like Coinbase and Kraken, and stimulate the development of crypto innovations.