Crypto and clemency converge in Trump’s pardon of Binance founder
Zhao’s pardon underscores a shift: in Washington, crypto’s legal fortunes now rise and fall less on compliance records and more on political alignment.
President Donald Trump granted a full pardon in late October to Changpeng Zhao, the billionaire founder of crypto exchange Binance Holdings Ltd. Zhao had pleaded guilty in 2023 to violating U.S. anti-money-laundering laws. His pardon follows months of lobbying from crypto industry allies amid growing ties between Binance and a Trump-family-linked digital asset venture.
The White House described the pardon as part of the president’s “commitment to fair treatment of innovators,” though Trump later told CBS’s 60 Minutes he “didn’t know who” Zhao was.
The Law in Play
Zhao admitted to violating the Bank Secrecy Act, which requires financial institutions to maintain effective anti-money-laundering programs. Federal prosecutors said Binance’s weak controls allowed criminals, sanctioned entities, and terrorist groups to move billions through the platform.
Supporters of the pardon argue that Zhao had cooperated with authorities, accepted responsibility, and completed his four-month prison term. Critics say the pardon undermines enforcement of AML laws and signals political favoritism toward connected business interests.
Timeline
November 2023: Zhao pleaded guilty to failing to maintain an adequate AML program and agreed to pay a $50 million personal fine. Binance paid a $4.3 billion corporate penalty and accepted an independent compliance monitor.
Early 2024: He began a four-month federal sentence and stepped down as Binance CEO.
September 2024: Zhao was released from custody.
Mid-2025: Binance deepened links with World Liberty Financial, a Trump-family-backed crypto firm, including sharing code for its USD1 stablecoin.
October 23, 2025: Trump issued the pardon, restoring Zhao’s civil rights.
November 2, 2025: In a televised interview, Trump dismissed knowledge of Zhao despite the pardon.
The Larger Story
Zhao’s case highlights how the U.S. government’s enforcement posture toward crypto has shifted from a regulatory crackdown to political accommodation.
During the Biden administration, Treasury and DOJ treated Binance as emblematic of global AML risk. Under Trump, crypto leaders once seen as adversaries now serve as informal allies in promoting digital-asset growth and deregulation.
The pardon also raises questions about the overlap between public policy and private profit. Binance’s cooperation with World Liberty Financial, whose investors include the Trump and Witkoff families, has blurred the line between political interest and commercial gain. The episode illustrates how presidential clemency, generally reserved for humanitarian or justice-system concerns, can now intersect with active financial markets.
What It Means in Practice
Tax and compliance professionals advising digital-asset businesses should note:
A presidential pardon does not erase the underlying regulatory obligations. FinCEN and the Office of Foreign Assets Control continue to enforce AML and sanctions rules.
Crypto firms with U.S. customers remain subject to Bank Secrecy Act registration, transaction monitoring, and recordkeeping duties.
Advisory teams should document internal AML procedures and board-level oversight decisions to mitigate exposure if enforcement priorities shift again.
Clients with operations tied to politically exposed persons should evaluate reputational risk and disclosure obligations under existing securities and tax regimes.
The case may embolden foreign exchanges seeking U.S. re-entry after enforcement actions, but legal liability remains unchanged.
What’s Next
The Department of Justice has indicated no intent to reopen the case, but Congressional oversight committees are reviewing pardons granted to figures with financial links to the Trump family.
Treasury will release an updated FinCEN advisory on virtual-asset AML expectations by year-end.
The SEC continues to refine its framework for classifying stablecoins and digital tokens, potentially affecting projects like USD1.
Binance’s post-pardon strategy for U.S. engagement—especially licensing and tax reporting—remains under observation by regulators.
The pardon of the Binance founder marks another turning point in Trump’s alignment with the crypto industry and raises new conflict-of-interest questions about his family’s digital-asset ventures.
The timing of this pardon shows how much political capital the crypto industry has built up. What's intersting is how Binance's cooperation with World Liberty Financial blurs the lines between policy and profit. I'd be watching closely to see if this sets a precedent for other exchange operators facing regulatory scrutiny.