Synopsis: Trump’s full pardon of Binance founder CZ rekindles US crypto optimism, reversing the Biden-era crackdown. CZ, once jailed for compliance failures, now aims to boost America’s crypto leadership.
Trump’s latest move has shaken the crypto world again. On Wednesday, he granted a full pardon to Binance founder Changpeng “CZ” Zhao. The decision has attracted strong reactions across political and crypto circles. CZ, who once faced prosecution under the Biden administration, now walks free and ready to rejoin America’s resurgent crypto movement.
Trump said he acted after hearing from “a lot of very good people” who believed CZ was wrongly targeted. “I’ve been told what he did is not even a crime,” Trump said at the White House on Thursday.
Former Binance CEO Zhao was sentenced to four months in prison last year for failing to maintain effective anti–money laundering systems. His company, Binance, had earlier paid a record $4.3 billion fine, though the court found no fraud or criminal intent in his case.
Reconsidering the Biden-Era Crackdown
The pardon reignites debate about the previous administration’s aggressive stance toward the crypto industry. During Biden’s term, regulators pursued Binance over compliance failures and possible links to illicit transactions. Trump described those actions as “political persecution,” arguing that the case symbolized government overreach.
CZ’s lawyer, Teresa Goody Guillén, shared similar views, calling the pardon “the right call.” She said CZ faced a “non-fraud-related charge with no victims, no money laundering, and no intent to deceive.” The attorney also emphasized that her client was the “first and only known first-time offender” to receive a prison term for such an offense.
Many crypto supporters have echoed that sentiment. They say the pardon aligns with Trump’s broader vision to make the U.S. “the crypto capital of the world.” It also highlights his administration’s shift toward supporting innovation over regulation.
Behind the Push for Pardon
Reports reveal that lobbying for CZ’s pardon began months ago. Influential figures within the crypto sector and business community supported it. Some lobbying efforts reportedly came from groups with close ties to Trump’s family network. Critics claimed the decision could hint at conflicts of interest. Nonetheless, the move fulfills a campaign promise Trump made to protect innovators from what he saw as unfair crackdowns.
White House Press Secretary Karoline Leavitt called the prosecution “overly harsh” and said it had been “thoroughly reviewed.” Despite controversies, the timing coincides with Trump’s pro-crypto stance since his 2024 reelection. His administration has already approved Bitcoin ETFs and hosted digital asset forums, marking a sharp pivot from past policy.
CZ’s Next Steps in Crypto
After the pardon, CZ posted a brief message on X: “Deeply grateful for today’s pardon. We’ll help make America the Capital of Crypto and advance Web3 worldwide.” His words mirror Trump’s own statements about crypto leadership.
The pardon clears CZ to resume roles previously barred by his plea deal. That could include returning to Binance or expanding his work with YZi Labs, his Web3 venture. Many believe his comeback could strengthen U.S. dominance in the new digital economy.
Market Reactions
Crypto markets quickly reflected optimism after the announcement. Binance Coin (BNB) rose nearly five percent, while Bitcoin crossed $110,000. Industry leaders praised the decision, calling it “the end of the war on crypto.” Critics like Senator Elizabeth Warren, however, called it a “failure of accountability.”
The broader signal is undeniable: Trump is betting on crypto’s future role in America’s economy. His approach favors deregulation and business growth over bureaucratic caution. Whether that fuels innovation or invites ethical scrutiny remains to be seen. Yet one thing feels certain: Trump’s pardon for CZ marks a new era where crypto’s power meets Washington’s politics head-on.
Written By Fazal Ul Vahab C H