By Jules Laurent | Euro Newsroom | Breaking Crypto News#Tradepulse
October 24, 2025 — In a move that sent ripples through both political and crypto circles, U.S. President Donald Trump has granted a full presidential pardon to Changpeng “CZ” Zhao, the founder and former CEO of Binance, closing one of the most closely watched enforcement cases in digital asset history.
Zhao was sentenced in April 2024 to four months in prison after pleading guilty to a single count related to anti-money-laundering (AML) compliance. He completed his sentence in September 2024. Under the broader settlement with U.S. authorities, Binance agreed to pay $4.3 billion and strengthen its compliance framework after investigators alleged the exchange enabled some users to evade sanctions.
Announcing the pardon, White House Press Secretary Karoline Leavitt called Zhao’s case a “symbol of the previous administration’s war on cryptocurrency,” emphasizing that there were “no allegations of fraud or identifiable victims.” She added:
> “The Biden Administration’s war on crypto is over. This pardon reflects our commitment to fair treatment and innovation leadership.”
---
What Makes This Case Unusual
Supporters highlight that Zhao is likely the first first-time offender to serve prison time for a non-fraud financial compliance violation in U.S. history. The sentencing judge noted there was no evidence Zhao knowingly facilitated illicit transactions, acknowledging his reasonable belief that Binance had sufficient safeguards in place.
While the pardon doesn’t alter the record of conviction, it removes all remaining federal penalties, effectively restoring Zhao’s legal standing.
---
A Clearer Pro-Crypto Pivot
The pardon marks a sharp policy pivot under the Trump administration—one that favors regulatory accommodation and economic opportunity in the digital asset space. Since returning to office in January, Trump$TRUMP
mp has:
Pledged to make the U.S. the world’s “crypto capital.”
Proposed the creation of a national cryptocurrency reserve.
Supported allowing retirement accounts to include crypto assets.
Launched his own digital token ahead of inauguration, pushing crypto firmly into the political mainstream.
Supporters hail this as a pragmatic embrace of innovation, while critics see it as a populist move to capture crypto voters.
---
Binance’s Next Chapter
Zhao stepped down as Binance CEO in November 2023, calling it “emotionally difficult but the right decision.” Binance, still the world’s largest crypto exchange by volume, continues to meet its compliance obligations under its U.S. settlement.
Reports suggest Binance representatives engaged in ongoing policy discussions with Trump-aligned advisors, including figures linked to World Liberty Financial, a crypto initiative associated with the Trump family. These talks reportedly focused on industry direction rather than specific business deals.
---
Why Markets Care
1. Regulatory Signal:
The pardon does not erase compliance obligations but does indicate a friendlier federal stance, potentially reducing “headline risk” for U.S. institutions exploring crypto.
2. Talent Confidence:
With Zhao’s record cleared, founders and executives may view the U.S. as less adversarial, provided companies proactively cooperate with regulators.
3. Policy Path:
Initiatives such as a crypto reserve or retirement account integration still require Congressional and agency follow-through. The pardon is a political signal, not yet a regulatory overhaul.
---
The Critics’ View
Opponents argue that compliance lapses at major exchanges can have serious national security implications and that executive clemency risks weakening deterrence. They warn the pardon could be perceived as politicizing financial enforcement—rewarding influence rather than compliance.
---
The Bottom Line
CZ’s pardon closes a significant chapter in U.S. crypto regulation. It underscores a shift from punitive oversight to policy integration—a posture favoring innovation within boundaries, rather than enforcement by litigation.
For the crypto industry, it’s not just the end of an era—it’s the start of a new policy climate where the U.S. government signals it wants to build with crypto, not against it.
---
Author: Jules Laurent
Publication: Euro Newsroom | Breaking Crypto News
Subscribe: [GCP Reader]
---
Would you like me to:
Format it specifically for Binance Blog style (more conversational, brand-aligned), or
Keep it as a neutral newsroom article suitable for wire services like CoinDesk or Bloomberg syndication?