Trump Defends CZ Pardon: “What He Did Is Not Even a Crime”

In a move that has sent shockwaves across the crypto and regulatory landscape, U.S. President Donald Trumpconfirmed he has officially pardoned Changpeng “CZ” Zhao, the founder and former CEO of Binance, declaring that the Chinese-Canadian entrepreneur was “persecuted, not prosecuted.”

Speaking at a White House press briefing on Thursday, Trump said the decision followed what he described as “strong recommendations” from influential industry figures and political allies who argued that CZ’s conviction was unjustified.

“I don’t know him personally, but I’ve been told by many that he’s a good man, that what he did wasn’t a crime,” Trump stated. “He was targeted by the Biden Administration. It’s time to bring fairness and innovation back to America.”

The presidential pardon, signed late Wednesday, was confirmed by Binance in an official statement to Cointelegraph, ending months of speculation about whether the crypto executive would regain his freedom and potentially his leadership role within the company.

From Conviction to Controversy

Zhao’s legal troubles stemmed from a single count of violating the U.S. Bank Secrecy Act, specifically for failing to maintain a fully compliant anti–money laundering (AML) program at Binance. In April 2024, he pleaded guilty and received a four-month prison sentence, despite prosecutors initially seeking a longer term.

Zhao’s defense team, led by crypto attorney Teresa Goody Guillén, has long argued that the punishment was disproportionate.

“CZ was convicted on a single technical charge—no fraud, no victims, no criminal history, no money laundering,” Guillén emphasized. “He is the first and only first-time offender in U.S. history to receive jail time for this non-fraud-related compliance lapse.”

The attorney further noted that the sentencing judge found no evidence that Zhao had knowledge of illicit transactions, concluding that it was “reasonable” for him to believe Binance’s internal systems met legal standards.

For many in the crypto industry, the case became a symbol of regulatory overreach, with critics claiming the U.S. government had sought to make an example of Binance amid its broader campaign against digital asset exchanges.

Trump’s Political and Economic Calculus

The decision to pardon Zhao comes at a pivotal moment for the Trump administration’s renewed pro-crypto stance. Since returning to office, the president has positioned himself as an advocate for “crypto-friendly capitalism,” vowing to make the United States “the Capital of Crypto.”

Trump’s rhetoric suggests a deliberate shift away from the enforcement-heavy approach that defined the previous administration. Analysts see the CZ pardon as both a symbolic gesture of regulatory reset and a strategic move to court digital asset investors, a group that has grown increasingly vocal in U.S. politics.

The White House’s calculus may also extend to global competition. With Europe advancing its MiCA framework and Asian jurisdictions like Hong Kong and Singapore actively courting blockchain firms, the U.S. risks falling behind in attracting fintech innovation.

“America needs to lead in crypto, not chase it away,” Trump declared. “CZ will help us do that.”

CZ’s Reaction: Gratitude and Renewal

Shortly after the announcement, Zhao posted a message to X (formerly Twitter), expressing “deep gratitude” for the presidential pardon.

“I will do everything I can to help make America the Capital of Crypto and advance Web3 worldwide,” he wrote.

Zhao also hinted at a potential return to Binance, from which he had stepped down as part of his plea deal. Legal experts suggest that the pardon may nullify prior restrictions preventing him from serving in an executive capacity, though regulatory approval would still be required.

Under Zhao’s previous leadership, Binance grew into the world’s largest cryptocurrency exchange, handling over $65 billion in daily trading volume at its peak and expanding into decentralized finance, Web3 development, and digital identity initiatives.

The Bigger Picture: Crypto Policy in Transition

Trump’s pardon of CZ is more than a personal reprieve—it marks a broader inflection point in U.S. crypto policy. The decision could embolden other high-profile figures under scrutiny, including those linked to crypto exchange compliance cases and DeFi regulatory disputes.

Meanwhile, bipartisan lawmakers continue to push for comprehensive digital asset legislation. Despite the ongoing government shutdown, Coinbase CEO Brian Armstrong recently confirmed that a crypto market structure bill is “90% complete,” signaling that the legislative environment may soon catch up to the fast-moving industry.

Whether the pardon represents a return to innovation-friendly governance or a politically motivated gamble remains to be seen. But for now, it has reignited debate over where the line between regulation and repression truly lies in America’s digital economy.

Source: Cointelegraph — “Trump on CZ Pardon: I’m Told ‘What He Did Is Not Even a Crime’” (October 24, 2025)
Written by Brian Leclere