Trump Reportedly Weighs Pardon for Binance Founder CZ Amid White House Rift

President Donald Trump is reportedly considering a full pardon for Binance founder and former CEO Changpeng “CZ” Zhao — a decision that could not only rewrite CZ’s legacy but also redefine Washington’s stance on crypto regulation.

According to financial journalist Charles Gasparino, sources inside the White House say the debate has intensified in recent weeks, with Trump’s advisers clashing over whether granting clemency to the billionaire entrepreneur would signal a bold policy reset or risk sparking political backlash.

CZ, one of the most recognizable figures in the digital asset world, served a four-month federal sentence earlier this year after pleading guilty to violating U.S. anti-money laundering laws. His conviction — part of the Biden administration’s sweeping crackdown on the crypto industry — forced him to step down as Binance’s CEO and pay a $50 million fine.

On top of that, Binance itself was hit with a record $4.3 billion penalty. Critics and Trump allies have long argued that Zhao’s prosecution was politically motivated, calling it emblematic of the “overreach” by Biden-era regulators.

For them, a pardon wouldn’t just clear Zhao’s name — it would mark a symbolic rebuke of what they describe as Washington’s heavy-handed approach toward crypto innovation.

A Divided White House and the Optics of Forgiveness

While insiders say Trump is leaning toward approving the pardon, the move has split opinion within the White House. Some aides reportedly fear that absolving Zhao — who remains one of the world’s richest crypto figures — could be seen as favoritism, especially given Trump’s growing business ties to digital assets.

Others, however, argue that Zhao’s cooperation with U.S. authorities, lack of prior offenses, and swift acceptance of responsibility justify leniency. They also see an opportunity: by pardoning CZ, Trump could position himself as a champion of crypto freedom and an adversary of regulatory excess.

Zhao’s legal troubles began in November 2023, when he pleaded guilty in a Seattle federal court to failing to maintain an effective anti-money laundering program at Binance, in violation of the Bank Secrecy Act. The plea deal allowed him to retain majority ownership in the company while stepping down from his executive role.

Sentenced to just four months in prison — far lighter than the three years sought by prosecutors — Zhao was released in September 2024 after serving 116 days.

Since then, he has repeatedly said that his time as Binance CEO is “a closed chapter,” focusing instead on ventures in artificial intelligence, biotechnology, and education. His nonprofit project, Giggle Academy, aims to provide free global education through blockchain-powered learning platforms.

Despite his apparent retreat from daily operations, Zhao remains Binance’s majority shareholder, reportedly owning 90% of the exchange. His net worth has soared past $75 billion, buoyed by BNB’s record highs and Bitcoin’s ongoing bull run.

A Pardon That Could Reopen Old Doors

If approved, Trump’s pardon would legally erase Zhao’s federal conviction, allowing him to resume unrestricted business activities in the U.S. — and potentially marking his formal return to the global crypto stage.

While those close to Zhao claim he’s content to remain out of the spotlight, others believe a pardon could reignite his influence in regulated markets and reestablish him as one of crypto’s most powerful figures.

For now, discussions inside the White House remain fluid. With foreign policy crises and economic headwinds competing for attention, a formal announcement could still take time. But even without it, the mere prospect of a Trump pardon has already sent ripples through both political and crypto circles — rekindling debates over justice, regulation, and the future of digital finance in America.

If Trump follows through, CZ’s redemption could become one of the defining moments of crypto’s political era — not just as a personal vindication, but as a clear signal that the next administration intends to redraw the boundaries of federal oversight. For Washington, it would be more than a pardon; it would be a pivot.