Changpeng Zhao (CZ), the founder of Binance, is reportedly seeking a pardon from the Trump administration following his legal troubles in the United States. The primary motivation appears to be clearing his criminal record after pleading guilty in 2023 to violations related to anti-money laundering (AML) laws.
A pardon would not erase the conviction itself but would remove the associated legal consequences, such as restrictions on travel, business operations, or personal rights (e.g., voting, depending on jurisdiction). Additionally, it could enhance his reputation and potentially ease Binance’s re-entry into the U.S. market, aligning with Trump’s pro-crypto stance. Reports suggest CZ sees this as a strategic move, possibly inspired by other crypto figures like Justin Sun, who reportedly benefited from ties to Trump after investing in Trump-related ventures.
There’s also speculation that CZ’s push for a pardon coincides with discussions about the Trump family acquiring a stake in Binance.US, hinting at a possible business-political alignment. However, CZ has publicly denied these specific claims about deal talks, calling such reports inaccurate on X as of March 13, 2025.
Why a pardon?
A presidential pardon in the U.S. is a powerful executive action that forgives federal crimes, effectively nullifying penalties like jail time or fines without declaring innocence. For CZ, a pardon could:
- Remove legal barriers: Lift restrictions tied to his felony conviction, such as potential bans on managing certain businesses or traveling freely to the U.S.
- Boost reputation: Reduce the stigma of his conviction, signaling to the crypto community and investors that he’s been “cleared” in a symbolic sense.
- Support Binance’s goals: Align with Trump’s crypto-policies, potentially smoothing regulatory hurdles for Binance’s operations, especially in the U.S., where it previously exited due to legal pressures.
- Leverage Trump’s stance: Trump’s administration has shown a shift toward embracing cryptocurrency, including promises of a national Bitcoin reserve and lighter regulations, making it a favorable moment for CZ to seek clemency.
The crypto community, including figures like Charles Hoskinson of Cardano, has framed CZ as a victim of regulatory overreach or “lawfare,” arguing that a pardon would rectify an unfair targeting of a key industry leader.
What did he commit?
CZ’s legal issues stem from his time as CEO of Binance, the world’s largest cryptocurrency exchange. In November 2023, he and Binance pleaded guilty to federal charges in the U.S. Here’s what happened:
- Crime: CZ admitted to failing to maintain an effective anti-money laundering (AML) program under the Bank Secrecy Act (BSA). Binance was accused of allowing illicit transactions, including those involving sanctioned countries like Iran, Cuba, and Syria, as well as funds linked to terrorists, cybercriminals, and other illegal activities.
- Details: The platform lacked proper protocols to flag or report suspicious transactions, enabling criminals to use it freely as of then. Court documents revealed Binance employees even acknowledged this lax oversight internally, with one reportedly joking about welcoming “drug money.”
- Consequences: As part of the plea deal, Binance paid a massive $4.3 billion penalty—one of the largest corporate fines in U.S. history and agreed to exit the U.S. market. CZ personally paid a $50 million fine, stepped down as CEO, and was sentenced to four months in prison in April 2024. He served his sentence and was released in September 2024.
The Justice Department emphasized that Binance’s growth was partly fueled by these compliance failures, profiting from fees on illegal transactions. Critics, however, argue CZ’s punishment was relatively light compared to others, like FTX’s Sam Bankman-Fried, who got 25 years for fraud, suggesting CZ’s case was more about regulatory gaps than direct criminal intent.
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