What's happened
On October 23, 2025, former President Donald Trump pardoned Changpeng Zhao, founder of Binance, who served four months in prison for violating the US Bank Secrecy Act. The pardon lifts restrictions preventing Zhao from operating in the US, aligning with Trump's pro-crypto stance and reversing Biden-era regulatory actions against cryptocurrency firms. The decision has sparked controversy over potential conflicts of interest involving the Trump family's crypto ventures.
What's behind the headline?
Political and Financial Implications
Trump's pardon of Zhao is emblematic of a broader shift in US crypto policy under his administration, favoring deregulation and industry growth. However, the move raises significant concerns about conflicts of interest, given Binance's financial dealings with the Trump family's crypto venture, World Liberty Financial. The pardon effectively enables Zhao to re-enter the US market and potentially resume leadership at Binance, which could accelerate the company's US expansion and influence.
Legal and Ethical Considerations
Zhao's guilty plea acknowledged failures in anti-money laundering compliance, a serious breach given the scale of illicit activity facilitated through Binance. Critics, including Senator Elizabeth Warren, view the pardon as a corruption risk, suggesting it rewards financial influence and undermines justice. Zhao's legal team disputes allegations of money laundering, emphasizing the distinction between regulatory violations and criminal laundering.
Market and Industry Impact
The pardon has bolstered Binance's credibility and Binance Coin (BNB) value, signaling confidence in the company's future. It also reflects Trump's strategic alignment with crypto interests, contrasting with the previous administration's crackdown. However, regulatory scrutiny and public skepticism will likely persist, especially as Zhao's return to Binance's operations could face close monitoring.
Outlook
This development will likely deepen partisan divides over crypto regulation and presidential pardon powers. Binance's US market re-entry could reshape the crypto landscape, but the intertwining of political and business interests may invite ongoing investigations and legislative responses. For the public, the story underscores the complex nexus of finance, politics, and law in emerging technologies.
What the papers say
The New York Times highlights Trump's distancing from Zhao, quoting him saying, "I don't know who he is," despite pardoning the crypto mogul, and notes concerns about the optics of the pardon given Binance's ties to the Trump family's crypto business (New York Times, 03 Nov 2025). CBS correspondent Norah O'Donnell's interview with Trump on 60 Minutes reveals his dismissive stance on Zhao's conviction, calling it a "Biden witch hunt" and denying knowledge of any business dealings (Ars Technica, Jon Brodkin, 03 Nov 2025).
Conversely, the Wall Street Journal reports on internal White House debates over the pardon and allegations of a potential deal between Binance and World Liberty Financial, which Zhao categorically denies (NY Post, 08 Nov 2025). Senator Elizabeth Warren condemns the pardon as "corruption," emphasizing Zhao's guilty plea and lobbying efforts, while Zhao's legal team threatens defamation suits over mischaracterizations of his conviction (NY Post, Charles Gasparino, 28 Oct 2025).
Al Jazeera and Bloomberg provide context on Zhao's legal troubles and the Biden administration's crackdown on crypto, framing Trump's pardon as a political reversal aimed at fostering innovation and fairness in the industry (Al Jazeera, 23 Oct 2025; Bloomberg, 27 Oct 2025). The South China Morning Post discusses Zhao's net worth and the potential for his return to Binance's leadership, noting the pardon as a political signal enhancing Binance's global credibility (South China Morning Post, 24 Oct 2025).
Together, these sources paint a complex picture of a high-stakes intersection between politics, business, and law, with contrasting views on the legitimacy and implications of Zhao's pardon.
How we got here
Zhao pleaded guilty in 2023 to failing to maintain adequate anti-money laundering controls at Binance, resulting in a $4.3 billion settlement and a four-month prison sentence. Binance was implicated in facilitating illicit transactions, including those linked to terrorist groups. Trump's 2024 election victory led to a more crypto-friendly administration, with Zhao lobbying for a pardon amid Binance's business ties to the Trump family's World Liberty Financial.
Go deeper
- What are the implications of Zhao's pardon for the US crypto market?
- How are the Trump family's crypto ventures connected to Binance?
- What legal controversies surround Zhao's conviction and pardon?
More on these topics
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Donald John Trump is an American politician, media personality, and businessman who served as the 45th president of the United States from 2017 to 2021.
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Changpeng Zhao, commonly known as CZ, is a Chinese-born Canadian businessman, investor, and software engineer. Zhao is the co-founder and CEO of Binance, the world's largest cryptocurrency exchange by trading volume as of July 2022.
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Binance is a cryptocurrency exchange that provides a platform for trading various cryptocurrencies founded in 2017. As of April 2021, Binance was the largest cryptocurrency exchange in the world in terms of trading volume.
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Elizabeth Ann Warren is an American politician and academic serving as the senior United States Senator from Massachusetts since 2013. She was formerly a prominent scholar specializing in bankruptcy law.
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Adam Bennett Schiff is an American politician serving as the U.S. Representative for California's 28th congressional district since 2001. He is a member of the Democratic Party.
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Joseph Robinette Biden Jr. is an American politician who is the 46th and current president of the United States. A member of the Democratic Party, he served as the 47th vice president from 2009 to 2017 and represented Delaware in the United States Senate
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World Liberty Financial is a decentralized finance protocol and cryptocurrency company founded in 2024. It has been noted for directly advertising its connection with Donald Trump and his family. A New York Times investigation described it as "evisceratin