Trump Pardons Binance Co-Founder CZ

U.S. President Donald Trump has pardoned Changpeng Zhao (CZ), the convicted founder of the cryptocurrency exchange Binance, in a move that follows months of efforts by Zhao and his company to support the Trump family's own crypto venture, the Wall Street Journal reported Wednesday, citing people familiar with the matter.

The president, who signed the pardon on Wednesday, recently told advisers he was sympathetic to arguments that Zhao and others faced political persecution, one of the people told the WSJ.

The White House confirmed the pardon. Press Secretary Karoline Leavitt stated that the president had "exercised his constitutional authority by issuing a pardon for Mr. Zhao, who was prosecuted by the Biden Administration in their war on cryptocurrency."

"The Biden Administration's war on crypto is over," Leavitt added.

Binance, the world's largest crypto exchange, did not immediately respond to WSJ's request for comment.

The pardon is a welcome reversal for Zhao, who was released from prison in September 2024 after serving a four-month sentence. It is expected to clear the way for Binance to return to the U.S. market. The company pleaded guilty in 2023 to violating U.S. anti-money-laundering requirements, agreeing to a record $4.3 billion fine and a ban on its U.S. operations. The Justice Department had described the exchange as a "colossal money-laundering hub" for criminal and sanctioned groups.

Links to Trump Family Business

The Wall Street Journal report links the pardon to Binance's recent support for World Liberty Financial, the Trump family's crypto venture.

According to the report:

• Since President Trump's election, Binance has been a key supporter of the venture, which the Journal noted has "driven a huge leap in the president's personal wealth"—generating significantly more income for the family in the past year than their property portfolio ever has annually.
• Binance has been a "main driver" of World Liberty's dollar-pegged cryptocurrency, USD1.
• The exchange delivered World Liberty's "first big break" this spring by accepting a $2 billion investment from an outside investor that was paid in USD1.
• Binance has also actively incentivized trading in the USD1 currency across platforms it controls.

Pardon Efforts and Implications

Binance has spent nearly a year pursuing the pardon for Zhao, hiring lobbyist Ches McDowell earlier this year to aid the effort, the WSJ previously reported.

The broadsheet also previously reported that Binance first contacted Trump allies last year seeking a business deal as part of a strategy to return to the U.S. Representatives for the Trump family have reportedly held talks to acquire a financial stake in Binance's U.S. arm.

Zhao had previously stated on X, "No felon would mind a pardon," and later filed a formal application for a pardon.

The pardon may prematurely terminate a three-year monitorship imposed by the Justice Department to ensure Binance's compliance with U.S. financial crime laws.

However, a separate monitorship established by the Treasury Department will likely remain in place unless President Trump or the Treasury secretary directly intervenes, the Journal noted.