Trump Considers Pardon for Binance Founder CZ Amid White House Concerns Over Potential Backlash: Report

President Donald Trump is reportedly contemplating the possibility of granting a pardon to Changpeng Zhao, the founder and former CEO of Binance, as stated by financial journalist Charles Gasparino.

Individuals familiar with the situation indicate that discussions within the White House have intensified in recent weeks, as Trump’s advisors assess the political and legal ramifications of such an action.

Trump Allies Advocate for CZ Pardon, Labeling Binance Case ‘Politically Motivated’

Changpeng Zhao, commonly referred to as “CZ,” completed a four-month prison sentence earlier this year after admitting guilt in 2023 to breaching U.S. anti-money laundering regulations.

The case, initiated during the Biden administration’s extensive crackdown on the cryptocurrency sector, compelled Zhao to resign as Binance CEO and pay a $50 million penalty.

Binance itself faced a $4.3 billion fine as part of the settlement, marking one of the largest corporate penalties in U.S. history.

According to Gasparino’s report, numerous Trump allies contend that the charges against Zhao were “weak” and did not justify felony accusations or incarceration.

SCOOP: Individuals close to @cz_binance, the former @binance chief who served time amid the Biden Admin’s crackdown on all things crypto, report that discussions within the White House are intensifying regarding the potential for a pardon from @realDonaldTrump. Many Trump insiders…

— Charles Gasparino (@CGasparino) October 10, 2025

They assert that the enforcement actions taken under the previous administration were politically driven and unfairly targeted cryptocurrency enterprises.

A pardon, they argue, would represent Trump’s readiness to “reset” Washington’s relationship with the digital asset sector and reevaluate what some insiders characterize as “overreaching” enforcement by regulators from the Biden era.

Trump is reportedly leaning towards endorsing the pardon, but there is division within the White House regarding the optics.

Some aides have expressed concerns about possible backlash, highlighting the president’s growing business connections to the cryptocurrency industry and the risk that a pardon could be seen as favoritism.

Conversely, others maintain that Zhao’s cooperation with law enforcement and absence of prior criminal history bolster the argument for clemency.

Zhao’s case emerged as one of the most prominent legal proceedings in cryptocurrency history. In November 2023, he acknowledged in a Seattle federal court that he had failed to establish an effective anti-money laundering program at Binance, violating the Bank Secrecy Act.

The plea agreement permitted him to retain majority ownership of Binance while stepping down from his executive position.

A Pardon Could Bring CZ Back to the Global Crypto Stage — But Does He Even Want It?

In April 2024, U.S. District Judge Richard Jones sentenced Zhao to four months in prison, significantly less than the 36 months sought by the Department of Justice.

A Seattle courtroom became the venue for a significant moment in the cryptocurrency industry as former Binance CEO Changpeng ‘CZ’ Zhao received a four-month prison sentence. https://t.co/WaQvI63Y3O

— Cryptonews.com (@cryptonews) April 30, 2024

Prosecutors had alleged that Binance facilitated transactions associated with sanctioned nations and illegal activities, but the judge cited Zhao’s cooperation, remorse, and clean record as mitigating factors.

Zhao was released from federal custody on September 27, 2024, two days ahead of schedule, after serving 116 days. Following his release, he expressed in interviews that he had no intention of returning as Binance’s CEO, describing his seven-year tenure at the company as “a closed chapter.”

Former Binance CEO Changpeng Zhao @cz_binance is back — with plans to continue investments in blockchain, AI and biotech after his prison stint. #Blockchain #CZhttps://t.co/3lOa0QZ5Pn

— Cryptonews.com (@cryptonews) September 30, 2024

In a November interview, he stated that he was concentrating on new projects in artificial intelligence, biotechnology, and education, including Giggle Academy, a nonprofit initiative aimed at providing free global basic education through gamified blockchain-based learning systems.

Despite stepping back from leadership, Zhao remains Binance’s largest shareholder, reportedly holding a 90% stake in the exchange.

His net worth, which surged to an estimated $75 billion, increased significantly following BNB’s rise to a new all-time high in July, coinciding with a surge in Bitcoin’s price to new all-time highs.

Binance continues to operate under CEO Richard Teng, who took over following Zhao’s resignation. The exchange still faces numerous legal challenges, including ongoing litigation with the bankrupt crypto firm FTX.

In November 2024, FTX filed a lawsuit against Binance and Zhao, seeking to recover nearly $1.8 billion in allegedly fraudulent transfers made prior to FTX’s collapse.

The lawsuit alleges that Binance’s 2021 share repurchase agreement with FTX was financed using misappropriated customer assets. Binance has denied these claims, labeling them as “meritless.”

Changpeng “CZ” Zhao has requested the Delaware Bankruptcy Court to dismiss a $1.76 billion recovery lawsuit filed by the FTX trust.#Binance #FTX #ChangpengZhaohttps://t.co/kUnttIufCw

— Cryptonews.com (@cryptonews) August 6, 2025

If granted, a Trump pardon would expunge Zhao’s criminal record and potentially facilitate his formal re-entry into the global cryptocurrency arena.

While sources close to him have indicated that he has moved past his Binance chapter, others believe a pardon could restore his capacity to engage more freely in regulated markets and corporate activities.

As discussions progress within the White House, the timing of any official decision remains unclear.

Gasparino noted that presidential pardons frequently take longer than anticipated, particularly amid competing foreign policy and economic priorities.

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