jakiro
Author: Divine Grace
No criminal would refuse a pardon, especially as the only person in U.S. history to be sentenced to prison on a single Bank Secrecy Act charge.
“The Biden administration’s war on cryptocurrencies is over.” White House Press Secretary Carolyn Leavitt declared in a statement on October 23.That night, Trump had signed a pardon for Changpeng Zhao (CZ), the convicted founder of cryptocurrency exchange Binance.
The amnesty shocked Wall Street, and Binance Coin surged in response.The four-year and four-month sentence ended with four months in prison and a pardon. The relationship between the Trump family and Binance involved was far more complicated than it seemed.
Amnesty Details: From Charges to Pardon
President Trump has signed a pardon for Changpeng Zhao.White House press secretary Carolyn Leavitt said Trump “has exercised his constitutional authority to issue a pardon for Mr. Zhao. He was prosecuted in the context of the Biden administration’s ‘war’ on cryptocurrencies. The Biden administration’s crypto war is over.”
This amnesty did not come without warning.In March 2025, the Wall Street Journal disclosed for the first time the contact between the Trump family and Binance’s US branch, claiming that the two parties were negotiating for a shareholding.
Changpeng Zhao strongly denied the report at the time, calling it “factually incorrect” and saying he had never discussed the Binance US transaction with anyone.
However, he also meaningfully added: “No criminal would refuse a pardon, especially as the only person in U.S. history to be sentenced to prison on a single Bank Secrecy Act charge.”
Case review: from richest man to prisoner
Changpeng Zhao’s story is a microcosm of the cryptocurrency industry.After founding Binance in 2017, he built the company into the world’s largest cryptocurrency exchange in just six months.
By the end of 2021, as Bitcoin surged, Zhao Changpeng became the richest Chinese man with a net worth of US$94.1 billion, and ranked among the top ten richest people in the world.
However, the good times did not last long. In November 2023, the U.S. Department of Justice announced a settlement with Binance. Binance admitted to violating money laundering regulations, conspiring to conduct unlicensed transfer businesses, and violating U.S. sanctions.
As part of the settlement, Binance paid$4.3 billionZhao Changpeng resigned from his position as CEO and paid a personal fine of US$50 million.
What’s more serious is that in April 2024, the US federal court sentenced Zhao Changpeng to four months in prison.He thus became the only person in U.S. history to be imprisoned on a single Bank Secrecy Act charge.
The business and political logic behind amnesty
Behind this amnesty are complex business interests and political considerations.According to the Wall Street Journal, contact between the Trump family and Binance has already begun. Potential plans include the Trump family directly holding Binance US shares or trading through World Liberty Financial, a cryptocurrency company supported by the Trump family.
For the Trump family, taking a stake in Binance US represents an opportunity to participate in the resurgence of the U.S. cryptocurrency trading market.In the past year, World Liberty Financial has brought more income to the Trump family than in any previous year from its real estate portfolio.
For Binance, Changpeng Zhao’s pardon willPaving the way back to the U.S. market, and help it expand overseas business.Previously, Binance US’s market share fell from 27% to just over 1% under regulatory pressure.
The shift in cryptocurrency regulation
Trump’s attitude toward cryptocurrencies has undergone a surprising shift.He told Fox News in the United States in 2021 that Bitcoin is a “scam.”However, during the 2024 US presidential election, Trump gained support from the cryptocurrency industry.
After taking office, Trump moved quickly to support the industry.In March 2025, Trump signed an executive order to establish a strategic Bitcoin reserve and announced that the US federal government would no longer sell up to 200,000 Bitcoins in its possession in the future.
At the White House Cryptocurrency Summit on March 7, Trump made it clear: “The previous administration’s ‘war’ on the entire cryptocurrency industry is over, and he supports Congress passing legislation to provide regulatory certainty for cryptocurrency and digital asset markets.”
The amnesty of Zhao Changpeng this time is a concrete manifestation of this policy shift.Through this move, Trump attempts to further solidify his image as the “cryptocurrency president” and fulfill his campaign promise of making the United States the “cryptocurrency capital of the world.”
Industry prospects and challenges after amnesty
Behind the amnesty of Zhao Changpeng, the Trump administration has a grander strategic plan.It was revealed that Trump is considering including five cryptocurrencies in the new U.S. cryptocurrency strategic reserve, including Bitcoin, Ethereum, Ripple, Solana and Ada.
Trump even made it clear: “Obviously, Bitcoin and Ethereum are going to be the core of that currency reserve.”
However, pardoning Changpeng Zhao is likely to draw intense scrutiny from Democrats on Capitol Hill.Earlier this year, Democrats had asked the Trump administration to detail its interactions with Binance and Changpeng Zhao regarding the pardon, saying Binance’s financial ties to the Trump family raised ethical concerns.
On the other hand, the pardon is likely to pave the way for Binance to return to the United States.The company pleaded guilty in 2023 to violating U.S. anti-money laundering regulations and was banned from operating in the United States.A pardon could also bring an early end to the Justice Department’s three-year external review of Binance.
Binance Coin skyrocketed after the amnesty news was announced, with the market voting in real money to express its approval of the decision.Changpeng Zhao’s personal destiny has also turned around. He was originally banned from “managing or operating” Binance for life, and may once again take charge of the cryptocurrency empire he created.
Trump had fulfilled a campaign promise to his libertarian supporters when he pardoned Ulbricht, the founder of the dark web “Silk Road”.The amnesty granted to Zhao Changpeng this time also has far-reaching symbolic significance.
Looking to the future,The regulatory landscape for cryptocurrencies is undergoing a fundamental shift, from confrontation to cooperation, from rejection to acceptance.
