U.S. President Donald Trump has granted a presidential pardon to Changpeng Zhao, the founder and former chief executive officer of global cryptocurrency exchange platform Binance.
Zhao, popularly known as CZ, pleaded guilty in 2023 to failing to maintain an effective anti-money-laundering programme at Binance.
As part of a negotiated settlement with U.S. authorities, Binance agreed to pay about US$4.3 billion in penalties while Zhao served a short four-month prison sentence in early 2024.
According to a White House statement released on Thursday, the pardon “recognises disproportionate penalties arising from an overly punitive interpretation of compliance failures” and is “consistent with the President’s evolving approach toward digital-asset innovation and fair enforcement.”
The decision immediately reverberated through global crypto markets and regulatory circles. Supporters described the move as a policy reset that acknowledges the complexity of regulating the fast-growing digital-asset sector.
Critics said it could undermine accountability and send mixed signals about compliance expectations for global exchanges operating in the U.S.
Zhao, in a brief post on the social platform X, expressed gratitude, saying he was humbled by the President’s decision and committed to contributing positively to the next phase of blockchain innovation.
Analysts said the pardon restores Zhao’s eligibility to return to executive or advisory roles within the cryptocurrency industry, though Binance itself remains under compliance supervision in several jurisdictions.
Bitcoin prices rose modestly following the announcement, briefly trading above US$71,000 as investor sentiment turned positive on expectations of a friendlier regulatory stance toward digital-asset businesses.
Shares of publicly listed crypto firms such as Coinbase and Marathon Digital gained between two and four percent in early U.S. trading.
Industry observers noted that the pardon could reshape the narrative around U.S. crypto policy under Trump’s administration, potentially softening enforcement approaches that had previously deterred institutional participation.
The move aligns with Trump’s recent remarks describing cryptocurrency as an essential pillar of America’s financial future.
His administration has signalled plans to review previous enforcement actions taken against digital-asset companies and to propose clearer, growth-oriented regulatory frameworks.
Regulators and lawmakers are expected to assess how the pardon may affect ongoing investigations involving exchanges and wallet providers. Legal experts emphasised that while presidential clemency forgives criminal liability, it does not erase corporate penalties or continuing oversight obligations.
Zhao’s case drew global attention because of Binance’s footprint in more than 100 countries, including emerging markets across Africa, Asia and Latin America.
In Nigeria, where Binance’s operations have faced scrutiny over currency trading and cross-border remittances, the pardon could revive discussion about balancing enforcement with innovation in fintech regulation.
The pardon is likely to encourage crypto entrepreneurs and investors who view Trump’s return to office as an opportunity for regulatory reform and renewed growth in blockchain technology.
It also raises questions about consistency in U.S. enforcement policy and the broader message it sends to global regulators pressing for stricter oversight of digital-asset platforms.
For now, Zhao’s clemency marks a turning point both for his personal legacy and for the global debate on how governments reconcile compliance enforcement with technological progress.