Trump Pardons CZ to Cement U.S. as Crypto Capital

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Sunday, Oct 26, 2025 1:27 am ET1min read
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- U.S. President Trump pardoned Binance co-founder CZ, signaling a strategic push to position the U.S. as a global crypto hub.

- CZ had admitted to violating U.S. banking laws, served a 4-month sentence, and paid a $4.3B settlement before the pardon.

- The move sparked market surges in Binance's BNB token and family-backed projects, but critics raised ethical concerns over political-crypto ties.

- CZ remains restricted from managing Binance until 2027 but retains a $54.5B stake and focuses on global crypto advocacy.

- Trump's administration also disbanded its crypto enforcement team, aligning with broader efforts to attract crypto firms to the U.S.

Binance co-founder Changpeng Zhao, known as CZ, has been granted a presidential pardon by U.S. President Donald Trump, marking a pivotal moment in the crypto industry's regulatory landscape. The clemency, announced on October 23, 2025, follows a 2023 plea deal in which Zhao admitted to violating U.S. banking laws by failing to implement anti-money laundering safeguards at Binance. The move has been widely interpreted as part of Trump's broader strategy to position the U.S. as a global crypto hub, while also deepening ties between the Trump family and the cryptocurrency sector, according to the

Business Times
.

The pardon came after Zhao served a four-month prison sentence at a minimum-security facility in California and agreed to a $4.3 billion settlement with Binance. U.S. authorities had accused Binance of processing over 1.1 million transactions between 2018 and 2022 that violated sanctions, including dealings with sanctioned entities like Hamas and Iranian residents, as

Bloomberg
reported. Trump defended the decision, stating that Zhao was "persecuted" by the Biden administration's crypto enforcement agenda. White House spokesperson Karoline Leavitt emphasized the pardon was "thoroughly reviewed" by legal advisors, the Business Times noted.

The news sent ripples through the crypto market.

BNB
, Binance's native token, surged by over 5% to $1,123, while
Aster
, a decentralized exchange backed by Zhao's family office, jumped more than 10%, according to
Yahoo Finance
. Binance spokesperson Jessica Jung hailed the move as a step toward making the U.S. the "crypto capital of the world," as reported by
CoinDesk
. However, critics argue the pardon raises ethical concerns, with some accusing the Trump administration of trading favors with crypto industry figures. The Trump family's financial links to Binance, including its involvement in a stablecoin project, have further fueled scrutiny, the Business Times added.

While the pardon removes criminal penalties, Zhao remains bound by the 2023 plea deal, which barred him from managing Binance for several years. However, once those restrictions expire, he could technically return to an executive role, according to

BeInCrypto
. Zhao, who retains a $54.5 billion stake in Binance, has since shifted focus to global crypto advocacy, promoting adoption in markets like Dubai and Pakistan while launching educational initiatives like Giggle Academy, Bloomberg reported.

The Trump administration's pro-crypto stance extends beyond pardons. In April 2025, the Justice Department disbanded its National Cryptocurrency Enforcement Team, signaling a pivot away from aggressive crypto investigations. This aligns with broader efforts to attract crypto firms to the U.S., including legislative pushes like the stalled Clarity Act, Bloomberg reported.

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