Changpeng Zhao — commonly referred to by his initials “CZ”, the founder of cryptocurrency exchange Binance — was surprised when Donald Trump granted him a full presidential pardon on 23 October 2025. For more on this development, see The Guardian +3 (Reuters + Business Insider).
CZ plead guilty in 2023 for violating the Bank Secrecy Act by failing to implement an effective anti-money-laundering (AML) program; this contributed to Binance’s $4.3 billion settlement with the U.S. Department of Justice and was one of several conditions necessary for that settlement agreement. CoinDesk +2 Reuters =2.
Here is an explanation of the pardon, its background and any potential ripple-effects on crypto markets, regulations and politics.
Why the Pardon Occurred
A White House statement delivered by Press Secretary Karoline Leavitt described the pardon as an exercise of constitutional authority to end “Biden-era crypto wars”. (AP News +1).
Leavitt stated that CZ faced prosecution despite no allegations of fraud or identifiable victims, according to Business Insider.
Other media reports note that Binance and related parties had been actively working towards gaining a pardon for months — hiring lobbyists and using relationships such as those forged with Trump family’s crypto venture to try to achieve it. Blockhead 1 3 4
CZ entered his guilty plea and resigned as CEO of Binance; then Binance itself entered a massive settlement agreement.
CoinDesk Wikipedia CZ served approximately four months in U.S. prison in 2024.
CZ’s pardon may remove any remaining legal hurdles, providing him with an opportunity to rejoin the crypto industry albeit under close watch. (CoinDesk: Implications for Crypto & Regulation.
- Industry Morale and Perception Shift
For many in cryptocurrency, President Trump’s pardon sends a strong signal that regulatory risk under his administration may be lessening. His de-emphasis of “War on Crypto” implies a shift from aggressive enforcement policies toward more industry-friendly policies. - Regulatory Risk Remains
In spite of being exonerated, Binance and other exchanges continue to face regulatory oversight and pressure from both local authorities and international bodies. Their corporate settlement obligations continue, as do compliance obligations that need to be fulfilled in accordance with compliance obligations. - Politics and Ethics Questions A report by the Financial Times raised red flags over timing and connections involved with Trump-era pardons and regulatory actions which correspond with large donors or business relationships. The Financial Times made this observation as well.
The CZ pardon may provoke scrutiny over possible quid pro quo arrangements or selective enforcement practices. - Market Reaction
Crypto markets responded quickly. BNB, Binance’s native coin for their ecosystem, registered approximately a 3% jump within minutes of hearing about this news, according to CoinDesk +1.
Confidence in large exchanges may be increased, yet questions about future regulation, oversight and corporate conduct are revived.
What to Watch Next
Will CZ return to an advisory or leadership position within crypto?
How will U.S. regulators–particularly Treasury, SEC and CFTC–respond in light of an amnesty yet continuing corporate obligations?
Will this signal a wider shift toward laxer crypto policies within the U.S. or is this just an isolated incident?
How will markets and investors perceive risk, oversight and institutional adoption of crypto assets?
Conclusion
President Trump’s pardon of CZ marks an extraordinary shift in crypto-regulation landscape. What started out as an enforcement milestone has now evolved into an act of mercy from authorities; for the crypto industry this development provides hope of reduced regulatory pressure and more conducive business environment – although compliance risks and ethical considerations still loom large; full ramifications will only become evident over time as regulators, markets, and the cryptocurrency community react to such unprecedented moves.
