jakiro
Author: Divine Grace
With Trump’s swipe, the king of cryptocurrency regained his innocence, but the political deal behind it is far more interesting than the pardon itself.
On October 23, when President Trump signed an amnesty order for Changpeng Zhao, the tortuous fate of the founder of Binance once again became the global focus.White House Press Secretary Levitt put it bluntly in a statement: “The Biden administration’s war on cryptocurrency is over.”
Four months ago, Zhao Changpeng was still serving his sentence in the Seattle federal prison. He was sentenced to four months in prison for failing to establish an effective anti-money laundering mechanism and violating U.S. economic sanctions regulations.Now, not only has he regained his freedom, but he has also received a pardon from the President of the United States, a change that has raised questions about potential conflicts of interest.
From jail to presidential pardon
Changpeng Zhao’s fall was as rapid as his rise.In November 2023, the entrepreneur who once ranked as the richest man in China with a net worth of US$94.1 billion admitted to violating US anti-money laundering regulations. Binance PaymentSky-high fine of US$4.3 billion, he himself resigned as CEO.
U.S. Attorney General Merrick Garland pointed out at the time: “Binance became the largest cryptocurrency exchange in the world partly because of the crimes it committed.” U.S. Treasury Secretary Yellen even criticized Binance for “turning a blind eye” to legal obligations in the pursuit of profits and allowing funds to flow through its platform to terrorists, cybercriminals and child abusers.
In April 2024, the Seattle Federal Court sentenced Zhao Changpeng to 4 months in prison, which was far lower than the 3-year sentence initially requested by the prosecutors.The judge told Changpeng Zhao: “Regardless of wealth, power, and status, no one is immune from prosecution or above U.S. law.”
Now, Trump’s pardonZhao Changpeng’s criminal record was erased, clearing the way for him to return to the cryptocurrency stage.
The political deal behind amnesty
Trump’s decision to pardon Zhao Changpeng was not without trace.In March 2025, the Wall Street Journal reported that representatives of the Trump family negotiated to acquire a stake in the cryptocurrency exchange Binance US.
Reports at the time pointed out that Zhao Changpeng had served four months in prison after pleading guilty and sought leniency from the Trump administration.Although Changpeng Zhao denied relevant reports on the X platform, the contacts between the Trump family and Binance have raised questions about potential conflicts of interest.
According to a report in the Wall Street Journal, the Trump family’s cryptocurrency business since the 2024 election has generated revenue of$4.5 billion, and has a cooperative relationship with the trading platform quietly managed by Binance.This amnesty decision was regarded by the outside world as an exchange of interests.
Trump described his pardon decision as an end to the Biden administration’s “political hunt” for the crypto industry.But this explanation cannot conceal the possible business interests between his family and Binance.
The rise and fall of Zhao Changpeng
Changpeng Zhao’s story is the epitome of the cryptocurrency industry.Born in Jiangsu, China in 1977, he immigrated to Canada with his parents when he was 10 years old.As a teenager, he worked at a Chevron gas station, McDonald’s, and as a volleyball referee.
When he was 13 years old, his father bought him an IBM-compatible 286 computer, an investment that helped him embark on a technical path.Afterwards, he received an undergraduate degree in computer science from McGill University and developed systems for futures trading software for the Tokyo Stock Exchange and Bloomberg.
In 2013, Changpeng Zhao first learned about cryptocurrency while playing poker. He later sold his Shanghai apartment and invested about $1 million in cryptocurrency at a price of $600 per coin.Even if Shanghai real estate values double and cryptocurrencies fall by half, he remains bullish on the latter.
In 2017, Changpeng Zhao founded Binance in Hong Kong.As cryptocurrency prices skyrocketed, Binance quickly grew into the world’s largest cryptocurrency exchange.At the end of 2021, Zhao Changpeng$90 billion worthReached the top of Forbes list of the richest Chinese.
However, Binance’s rapid expansion comes with compliance concerns.U.S. regulators alleged that Binance failed to establish an effective anti-money laundering mechanism and violated U.S. economic sanctions regulations.These issues eventually led to his run-ins with the U.S. justice system.
The legal and political realities behind amnesty
The pardon power of the President of the United States originates from Article 2, Section 2 of the U.S. Constitution. In addition to impeachment cases, the President has the power to grant probation and pardon to those who violate federal laws.This power is virtually unlimited, allowing Trump to vacate Changpeng Zhao’s criminal conviction.
This is not the first time Trump has used his pardon power.Before the end of his term in January 2021, he pardoned dozens of people including son-in-law Kushner’s father and former national security assistant Flynn.At that time, some US media even revealed that Trump’s allies and aides were collecting fees from people seeking pardon from the president.
For Zhao Changpeng, the actual legal value of the pardon may be limited because he has already served his sentence.But the symbolism was huge – the pardon erased his criminal record and cleared the way for him to return to the business and political arena.
A new chapter in cryptocurrency regulation
Trump’s decision to pardon Zhao Changpeng symbolizes a shift in U.S. cryptocurrency policy.The White House made it clear that the move was aimed at ending the Biden administration’s heavy-handed regulation of the cryptocurrency industry.
In recent years, global regulations on cryptocurrency have been tightened.In 2023, as FTX, the world’s top five cryptocurrency exchange, declared bankruptcy, countries’ regulation of cryptocurrency has become more stringent.The U.S. Securities and Exchange Commission also filed 13 charges against Binance.
Chen Jia, a researcher at the International Monetary Research Institute of Renmin University of China, pointed out that for cryptocurrency to develop sustainably in the future, it is urgent to solve problems in four aspects:Compliance, security, risk control, liquidity.These are also the four foundations of future U.S. crypto asset exchanges.
By pardoning Changpeng Zhao, Trump sent a clear signal that his administration will take a more relaxed regulatory stance on the cryptocurrency industry.This policy shift could open the door for Binance to re-enter the U.S. market.
For Zhao Changpeng, amnesty means a new beginning.In an interview with Caixin in September, Changpeng Zhao mentioned that he would invest more energy in the venture capital institution YZi Labs and has been invited to serve as the official encryption industry advisor to many governments.
Binance may also be facing major changes.Although under the settlement agreement, Binance was required to completely withdraw from the United States and appoint a monitor for five years, Trump’s pardon may create favorable conditions for Binance to return to the U.S. market.
At the same time, Changpeng Zhao is also expected to re-participate in the management of Binance.The previous judgment stipulated that he should not participate in the management or decision-making activities of Binance within 3 years after his release from prison, and the amnesty may lift this restriction.
The market reacted positively to Zhao Changpeng’s return.After the news of the amnesty came out, BNB rose 7%, returning to above $1,100, and Bitcoin also returned to $110,000.This market reaction shows that investors regard Zhao Changpeng’s return as a good thing for the industry.
Trump’s pardon has rewritten Zhao Changpeng’s fate, butThe global game for cryptocurrency has just begun.As the relationship between the Trump family and Binance deepens, and Changpeng Zhao travels among political leaders from various countries, the future of cryptocurrency will be closely intertwined with geopolitics.
After Changpeng Zhao was released, he promised to “do all he can to help the United States become the capital of cryptocurrency.” The end point of this sentence is meaningful.Wherever he goes, the future of cryptocurrency will be reshaped by the collision of national interests and decentralized ideals.
