President Trump pardons Changpeng Zhao (CZ) - BNB token surges

From Guilty Plea to Gilded Freedom

The pardon, signed Wednesday and confirmed by Press Secretary Karoline Leavitt, expunges Zhao’s November 2023 sentence under the Bank Secrecy Act for failing to adequately implement AML controls at Binance, facilitating more than $100 billion in illicit fund flows, including sanctions evasion.

Zhao, 47, served just four months at FCI Terminal Island before being released in September 2024, along with a $50 million personal fine and Binance's $4.3 billion fine — the largest corporate settlement in crypto history.

The pardon restores Zhao's full rights, including his ability to return to the United States, and lifts remaining restrictions on his involvement in Binance—he retains a 20% stake worth $20 billion. White House officials described the pardon as a "righting of wrongs," noting Zhao's "cooperation" and Binance's compliance improvements after pleading guilty, including a $1 billion investment in AML.

Critics, including Democratic senators, have denounced the exchange as a scam, citing Binance’s $2 billion deal in May 2025 with World Liberty Financial, a Trump-backed stablecoin issuer. Zhao, who pleaded guilty without admitting to broader wrongdoing, has been lobbying for a pardon since Trump’s inauguration in January, the WSJ reported.

Impact on Binance Ecosystem & Exchange

Binance has faced intense scrutiny from U.S. regulators, including billion-dollar fines. Zhao’s pardon could alleviate some of the uncertainty surrounding the exchange’s long-term strategic position and its ability to cooperate with U.S. regulators or operate in markets adjacent to the U.S. This could affect:

Exchange listing strategy and regulatory compliance framework Partnerships, institutional offerings and trust in crypto liquidity providers.

Zhao, an Iranian-Canadian entrepreneur, co-founded Binance in 2017, growing the exchange to 170 million users and $300 billion in monthly trading volume—making it the world’s largest. A 2023 U.S. Justice Department investigation alleges Binance facilitated $100 billion in illegal transactions, from selling fentanyl to evading Russian sanctions, leading to Zhao’s resignation and a $4.3 billion fine. Despite the fallout, Binance has rebounded under new CEO Richard Teng, posting a $2 billion profit in Q3 thanks to ETF inflows.

BNB surged 5.2% to $1,400 on the news, breaking through the $1,350 resistance with $2.5 billion in trading volume - futures OI increased 30% on Binance. Options volume showed a 45% year-to-date surge, with the $1,500 BNB option strike price doubling.

Evaluation and Conclusion

CZ’s pardon is a watershed moment for the crypto industry – it includes regulatory relief, corporate governance implications, and changes in market sentiment. While this may improve Binance’s immediate position and alleviate a significant US liability, it does not address the broader structural issues in crypto regulation, exchange compliance, and global coordination.

For investors, platforms, and policymakers, the lesson is clear: cryptocurrencies are increasingly subject to the same political, regulatory, and governance dynamics as traditional finance. The next frontier is not simply “what crypto can do,” but “how crypto fits into institutional rules and expectations.”

Disclaimer: The information presented in this article is the author's personal opinion in the cryptocurrency field. It is not intended to be financial or investment advice. Any investment decision should be based on careful consideration of your personal portfolio and risk tolerance. The views expressed in this article do not represent the official position of the platform. We recommend that readers conduct their own research and consult with a professional before making any investment decisions.