Author: Shen En
With a single stroke of Trump's pen, the king of cryptocurrencies regained his innocence, but the political deal behind it is far more intriguing than the pardon itself.
On October 23, when President Trump signed the pardon for Changpeng Zhao, the founder of Binance, his tortuous fate once again became the focus of global attention. White House Press Secretary Levitt stated bluntly in a statement: "The Biden administration's war on cryptocurrencies is over."
Four months ago, Changpeng Zhao was still serving time in Seattle federal prison, sentenced to four months in prison for failing to establish an effective anti-money laundering mechanism and violating US economic sanctions regulations.
Now, he has not only regained his freedom but also received a presidential pardon, a turn of events that has raised questions about potential conflicts of interest. From imprisonment to presidential pardon, Zhao Changpeng's fall was as rapid as his rise. In November 2023, this entrepreneur, who once topped the list of the richest Chinese people with a net worth of $94.1 billion, admitted to violating US anti-money laundering regulations, and Binance paid a record-breaking $4.3 billion fine. He also resigned as CEO. U.S. Attorney General Merrick Garland stated at the time, "Binance became the world's largest cryptocurrency exchange partly because of the crimes it committed." U.S. Treasury Secretary Janet Yellen further criticized Binance for "ignoring" its legal obligations in its pursuit of profits, allowing funds to flow through its platform to terrorists, cybercriminals, and child abusers. In April 2024, a Seattle federal court sentenced Changpeng Zhao to four months in prison, far less than the three-year sentence initially sought by prosecutors. The judge told Zhao, "No one is immune from prosecution or above U.S. law, regardless of wealth, power, or status." Now, Trump's pardon has erased Zhao's criminal record, clearing the way for his return to the cryptocurrency arena. The Political Deal Behind the Pardon Trump's decision to pardon Changpeng Zhao was not without precedent. In March 2025, the Wall Street Journal reported that representatives of the Trump family had negotiated a stake in the cryptocurrency exchange Binance US. The report at the time indicated that Zhao had served four months in prison after pleading guilty and was seeking leniency from the Trump administration. Although Zhao denied the reports on the X platform, the contact between the Trump family and Binance has raised questions about a potential conflict of interest. According to a report by The Wall Street Journal, the Trump family's cryptocurrency business, which has been operating since the 2024 election, has generated $4.5 billion in revenue and has a partnership with the trading platform Binance, which is quietly managed. This pardon decision has therefore been viewed by outsiders as potentially involving a quid pro quo. Trump described his pardon decision as ending the Biden administration's "political persecution" of the crypto industry. However, this explanation cannot conceal the possible commercial ties between his family and Binance. The Rise and Fall of Changpeng Zhao: Changpeng Zhao's story is a microcosm of the cryptocurrency industry. Born in Jiangsu, China in 1977, Zhao Changpeng immigrated to Canada with his parents at the age of 10. During his teenage years, he worked at a Chevron gas station and McDonald's, and also served as a volleyball referee. At the age of 13, his father bought him an IBM-compatible 286 computer, an investment that helped him embark on a career in technology. He later earned a bachelor's degree in computer science from McGill University and subsequently developed systems for the Tokyo Stock Exchange and Bloomberg Futures Trading. In 2013, Zhao Changpeng first learned about cryptocurrency while playing poker. He subsequently sold his Shanghai apartment and invested approximately $1 million in cryptocurrency at $600 per coin. Even after his Shanghai property doubled in value while cryptocurrency prices halved, he remained bullish on the latter. In 2017, Zhao Changpeng founded Binance in Hong Kong. With the surge in cryptocurrency prices, Binance rapidly grew into the world's largest cryptocurrency exchange. At the end of 2021, Changpeng Zhao topped the Forbes list of the richest Chinese people with a net worth of $90 billion. However, Binance's rapid expansion was accompanied by compliance risks. US regulators alleged that Binance failed to establish an effective anti-money laundering mechanism and violated US economic sanctions regulations. These issues ultimately led to his conflict with the US judicial system. The Legal and Political Realities Behind Pardons: The US president's power of pardon originates from Article II, Section 2 of the US Constitution, which, except in cases of impeachment, grants probation and pardons to those who violate federal laws. This virtually unlimited power allowed Trump to drop Zhao Changpeng's criminal conviction. This wasn't the first time Trump had used his pardon power. Before his term ended in January 2021, he pardoned dozens of people, including his son-in-law Jared Kushner's father and former National Security Advisor Michael Flynn. At the time, some US media outlets even reported that Trump's allies and aides received fees from those seeking presidential pardons. For Zhao Changpeng, the actual legal value of the pardon may be limited, as he has already served his sentence. However, its symbolic significance is enormous—the pardon erases his criminal record, paving the way for his return to the business and political arena. A New Chapter in Cryptocurrency Regulation Trump's decision to pardon Changpeng Zhao symbolizes a shift in US cryptocurrency policy. The White House explicitly stated that this move aims to end the Biden administration's stringent regulations on the cryptocurrency industry. In recent years, global regulation of cryptocurrencies has been continuously tightening. In 2023, with the bankruptcy of FTX, one of the world's top five cryptocurrency exchanges, regulations on cryptocurrencies became even stricter in various countries. The US Securities and Exchange Commission also filed 13 charges against Binance. Chen Jia, a researcher at the International Monetary Institute of Renmin University of China, pointed out that for cryptocurrencies to achieve sustainable development in the future, they urgently need to address four key issues: compliance, security, risk control, and liquidity. These are also the four cornerstones of future US cryptocurrency exchanges. Trump's pardon of Changpeng Zhao sends a clear signal: his administration will adopt a more lenient regulatory stance towards the cryptocurrency industry. This policy shift may open the door for Binance to re-enter the US market. For Changpeng Zhao, the pardon signifies a new beginning. In a September interview with Caixin, Zhao mentioned focusing more on his venture capital firm, YZi Labs, and has been invited to serve as an official cryptocurrency industry advisor to several governments. Binance may also face significant changes. Although the settlement agreement required Binance to completely withdraw from the US and appoint a five-year oversight officer, Trump's pardon may create favorable conditions for Binance's return to the US market. Meanwhile, Changpeng Zhao is also expected to rejoin Binance's management. His previous sentence prohibited him from participating in Binance's management or decision-making activities for three years after his release, but the amnesty may lift this restriction. The market reacted positively to Zhao's return. Following the amnesty news, BNB rose 7%, returning above $1100, and Bitcoin also returned to $110,000. This market reaction shows that investors view Zhao's return as a positive development for the industry. Trump's amnesty has rewritten Zhao's fate, but the global cryptocurrency game has only just begun. As the Trump family's relationship with Binance deepens, and as Changpeng Zhao moves among political figures worldwide, the future of cryptocurrency will become inextricably linked to geopolitics. Zhao Changpeng's promise after his release to "do everything in his power to help the United States become the cryptocurrency capital" carries profound implications. Wherever he goes, the future of cryptocurrency will be reshaped in the clash between national interests and decentralized ideals.
Miyuki
Alex
Weiliang
Brian