Trump pardons Binance's Changpeng Zhao: Who is he and why was he in jail

Changpeng Zhao, widely known as "CZ" served a four-month prison term in 2024, pleaded guilty to failing to implement adequate anti-money-laundering (AML) measures at Binance

US President Donald Trump has granted a full presidential pardon to Changpeng Zhao, chief executive officer of cryptocurrency exchange Binance, who was convicted of violating anti-money-laundering (AML) laws, the Washington Post reported.

 

White House spokeswoman Karoline Leavitt said on Thursday (local time), “President Trump exercised his constitutional authority by issuing a pardon for Mr Zhao, who was prosecuted by the Biden administration in their war on cryptocurrency. They pursued Mr Zhao despite no allegations of fraud or identifiable victims.”

 

Zhao, widely known as “CZ" served a four-month prison term in 2024, pleaded guilty to failing to implement adequate AML measures at Binance. His guilty plea was part of a broader settlement with the US government, which included $4.3 billion in payments by Binance.

 

 

“Deeply grateful for today’s pardon and to President Trump for upholding America’s commitment to fairness, innovation, and justice,” Zhao posted on X, adding that he would work to make “America the Capital of Crypto.” 

Deeply grateful for today’s pardon and to President Trump for upholding America’s commitment to fairness, innovation, and justice.  ????????????????  Will do everything we can to help make America the Capital of Crypto and advance web3 worldwide.  (Still in flight, more posts to come.)…

— CZ ???? BNB (@cz_binance) October 23, 2025

 

Who is Changpeng Zhao?

 

• Background: Born in 1977 in Jiangsu, China, Zhao emigrated to Canada in the late 1980s
• Early career: Developer at Tokyo Stock Exchange and Bloomberg Tradebook; founded Fusion Systems in 2005 for high-frequency trading
• Crypto beginnings: Joined Blockchain.info and OKCoin in 2013
• Founded Binance (2017): Raised $15 million through an initial coin offering (ICO); built Binance into the world’s largest crypto exchange
• Innovations: Created Binance Coin (BNB) and Binance Smart Chain, rivaling Ethereum
• Net worth: Estimated at $23 billion before legal troubles

 

Why Zhao was convicted

 

In November 2023, Zhao pleaded guilty to a US federal charge under the Bank Secrecy Act, which mandates strict anti-money-laundering (AML) compliance for financial institutions.

 

Prosecutors said Binance, under Zhao’s leadership, failed to implement adequate AML safeguards, allowing unmonitored transactions worth billions of dollars. The US government claimed Binance “prioritised growth over compliance”. 

As part of a $4.3-billion settlement with the US government, one of the largest corporate penalties in history, Zhao paid a $50-million fine and stepped down as CEO.

 

Despite the conviction, the court acknowledged that Zhao did not knowingly facilitate criminal activity, treating the lapse as a compliance failure rather than fraud. He was sentenced to four months in prison in April 2024.

 

Trump’s pardon, issued on October 23, 2025, erases Zhao’s conviction, restores his civil rights, and allows him to resume business operations in the US.

 

Crypto markets surge 

 

The global cryptocurrency market rallied sharply following the pardon, with major tokens surging on optimism over a potential policy shift towards digital assets in the US.

 

According to The Economic Times, Binance Coin (BNB) jumped 5.3 per cent to $1,128, Bitcoin rose 2.18 per cent to $1,09,955.70, and Ethereum also traded higher amid a spike in trading volumes.

 

The move sparked strong buying activity across Binance-linked tokens, with market analysts describing the rally as a “vote of confidence” in Trump’s pro-crypto stance.