Donald Trump is reportedly considering granting a presidential pardon to Binance founder Changpeng “CZ” Zhao. According to recent rumors from the White House, senior aides are split on the issue, engaging in spirited debates about the potential backlash from regulators and lawmakers. Some view CZ’s conviction as a landmark case in financial crime enforcement, adding a layer of complexity to the situation.
CZ’s Sentencing and Legal History
If granted, the pardon would effectively clear Zhao’s federal conviction even though he has already served time. Zhao, formerly the CEO of Binance, pleaded guilty in 2023 to violations of the Bank Secrecy Act, primarily for lacking a comprehensive anti-money-laundering program.
@cz_binance, the former @binance chief who spent time in federal custody amid the Biden Administration’s crackdown on cryptocurrencies, is again the center of attention. Reports suggest that discussions about a potential pardon from @realDonaldTrump are heating up within White House circles.
— Charles Gasparino (@CGasparino) October 10, 2025
The US Department of Justice accused Binance of facilitating transactions that circumvented sanctions and compliance regulations. Following a settlement, Zhao stepped down as CEO, paid a $50 million fine, and served four months in federal prison. Binance itself faced substantial penalties, amounting to $4.3 billion, marking one of the largest corporate fines in US history.
After his release in mid-2024, Zhao has remained outside the US and is barred from holding an executive role within Binance.
What the Pardon Would Mean for CZ
A presidential pardon does not overturn the factual basis of a conviction but removes its legal and civil consequences. For Zhao, this would mean the felony conviction would be erased from his record, allowing him to conduct business legally in the US once again and lifting restrictions tied to background checks.
Despite having completed his sentence, the felony conviction still restricts his access to US financial institutions, immigration visas, and the ability to hold corporate directorships. A pardon would rehabilitate his status, making him eligible for regulatory approval in future business ventures.
Could CZ Return to Binance?
Even with a pardon, Zhao would remain constrained by separate regulatory agreements established with the US government, which prohibit him from assuming any management role at Binance for several years. However, a cleared criminal record might allow him to re-enter the US financial and crypto markets as an investor, advisor, or founder of different projects. This change could foster new partnerships previously impeded by past compliance constraints.
Notably, reinstating him at Binance could arouse renewed scrutiny from US regulators and international partners, given ongoing concerns surrounding the exchange’s compliance practices. As of now, no formal decision has been made, but the discussion surrounding a pardon for one of crypto’s most prominent figures continues to evoke intense debate.
