CZ's Pardon Push Ignites Ethical Debates Over Binance-Trump Ties

The U.S. Department of Justice has confirmed that no presidential pardon has been issued to Changpeng Zhao (CZ), founder of Binance, as of July 2025, despite ongoing speculation linked to Donald Trump. Zhao, who was sentenced in April 2024 to four months in prison for failing to maintain an effective anti-money laundering program at Binance, has publicly confirmed submitting a pardon application to Trump in May 2025, following media reports suggesting discussions with Trump-linked crypto ventures Cryptopolitan^[1].

Zhao's legal team filed the request approximately two weeks prior to his May 6 podcast appearance, where he stated the decision was influenced by Bloomberg and Wall Street Journal articles alleging negotiations with Trump's inner circle. While he denied active business discussions at the time, he acknowledged that the media coverage prompted formal action. "If they're writing this article, I might as well just officially apply," Zhao remarked The Block^[2].

Trump's administration has previously granted pardons to prominent crypto figures, including Silk Road founder Ross Ulbricht and BitMEX co-founders Arthur Hayes, Benjamin Delo, and Samuel Reed. These precedents, combined with Trump's broader pro-crypto stance, have fueled speculation about potential leniency for Zhao Bloomberg^[3]. However, the former Binance CEO has clarified he has no plans to return as CEO, despite remaining the company's largest shareholder. "I'm not really looking to become CEO of Binance again," he stated, emphasizing the team's strong performance post-sentence Crypto Head^[4].

The pardon application has sparked ethical concerns. Binance's involvement in Trump family ventures, including the creation of USD1-a stablecoin backed by the Trumps' World Liberty Financial-has raised questions about conflicts of interest. Blockchain data reveals over $2 billion in USD1 tokens remain in Binance wallets, generating potential annual interest income for the Trumps Blockonomi^[5]. A White House spokesperson declined to comment on the matter, while World Liberty dismissed the allegations as "factually deficient" CoinGabbard^[6].

Zhao's legal troubles began in 2023, when he pleaded guilty to violating the Bank Secrecy Act, leading to a $4.3 billion corporate fine, a $50 million personal penalty, and a four-month prison sentence. Post-release, he has focused on international advisory roles in countries like Pakistan and Kyrgyzstan, advocating for crypto regulation and blockchain adoption .

The market reaction to the rumors was brief but notable. Binance's native token BNB surged to $650 before retreating to $644, while Trump's branded cryptocurrency (TRUMP) fell 2% in 24 hours, down 30% over 30 days . Analysts note that a pardon could allow Zhao to re-enter operational roles at Binance US, though it would not erase his conviction .