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The White House is reportedly reviewing the possibility of granting a presidential pardon to Binance co-founder Changpeng “CZ” Zhao, a move that could reshape the narrative around one of the most influential figures in global crypto.
According to reports from New York Post columnist and Fox Business correspondent Charles Gasparino, insiders close to Zhao claim that the Trump administration is “leaning toward a pardon.” The former Binance CEO served four months in prison earlier this year after pleading guilty to a violation of the Bank Secrecy Act (BSA) in a 2024 case brought by the U.S. Department of Justice.
Trump Administration Weighs Pardon for CZ
Gasparino reported that sources within Trump’s circle view the case against Zhao as relatively weak, arguing that the charges did not warrant a felony conviction or jail time. He noted that Trump’s advisors believe the case lacked substantial evidence and may have been influenced by the heightened scrutiny of the crypto sector following major industry collapses.
“Trump is leaning toward a pardon, which could pave the way for CZ’s return to Binance since he remains its largest shareholder,” Gasparino wrote, citing people familiar with the matter.
If granted, the pardon would align with Trump’s broader pro-crypto stance. His administration has been seen as more supportive of digital assets, reportedly easing enforcement actions, advancing new regulatory frameworks, and previously granting clemency to other crypto figures such as BitMEX co-founder Arthur Hayes and Silk Road founder Ross Ulbricht.
CZ Responds to Speculation
Changpeng Zhao responded to Gasparino’s post on social media platform X, neither confirming nor denying knowledge of any potential pardon. However, he expressed appreciation for the positive coverage and offered clarification regarding his previous conviction.
“Thank you, Charles. Great news if true,” Zhao wrote. “Minor correction, there were no fraud charges. I pleaded to a single violation of the Banking Secrecy Act. I believe I’m the only person ever sentenced to jail in U.S. history for a single BSA violation, with no other charges or prior offenses.”
In May, Zhao confirmed during an appearance on the Farokh Radio podcast that he had officially submitted a pardon application after reports surfaced suggesting he was seeking one.
Neither Binance nor the White House provided official comments regarding the situation.
Background on the Binance Case
Zhao’s plea deal in November 2023 marked one of the largest settlements in U.S. regulatory history. As part of the agreement, Binance paid a $4.3 billion fine, while Zhao personally paid $50 million and stepped down as CEO. His plea barred him from participating in Binance’s operations for a specified period.
Despite his conviction, Zhao remains a central figure in the global crypto landscape. His leadership helped Binance grow into the world’s largest digital asset exchange, commanding a dominant market share and influencing broader trends in decentralized finance.
Potential Obstacles to a Pardon
While the pardon consideration signals potential political support, Gasparino cautioned that internal concerns could slow or derail the process. Some White House officials reportedly worry about the optics of granting a pardon to a crypto executive, given Trump’s own ventures in the digital asset space.
The former president and his family have been active in crypto-related initiatives, including a token project and decentralized finance venture called World Liberty Financial, which has drawn scrutiny for potential conflicts of interest.
“These things often take longer than expected,” Gasparino added, noting that the administration is juggling multiple geopolitical priorities — from Middle East peace efforts to trade negotiations with China — which could delay a decision.
Industry Reaction and the FTX Connection
According to journalist Eleanor Terrett, co-host of the Crypto In America podcast, some crypto executives view the case against CZ as a byproduct of the regulatory overreaction that followed the collapse of Sam Bankman-Fried’s FTX empire in late 2022.
“CZ wasn’t accused of fraud like SBF,” Terrett noted. “Many industry players see his sentence as regulators trying to make an example out of anyone operating in or around the U.S. crypto ecosystem after FTX.”
Bankman-Fried, the former CEO of FTX, is currently serving a 25-year prison sentence for multiple felony convictions linked to the exchange’s collapse, which wiped out billions in investor funds.
What a Pardon Could Mean for the Crypto Sector
If the White House proceeds with a pardon, it could mark a pivotal shift in the U.S. government’s relationship with the crypto industry. It would signal a more lenient approach toward past enforcement actions and potentially encourage greater institutional engagement in the sector.
For CZ, the move could also open the door for a formal return to Binance or renewed participation in industry innovation. While the final decision remains uncertain, the conversation around his potential pardon underscores how intertwined digital assets have become with U.S. politics and policy in 2025.
