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Presidential Pardon for Binance Founder Changpeng Zhao
On October 23, 2025, U.S. President Donald Trump granted a pardon to Changpeng “CZ” Zhao, the founder of Binance. This pardon lifts a federal conviction related to failures in adhering to anti-money-laundering regulations.
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In 2023, Zhao had admitted guilt, agreeing to a fine of $50 million and serving approximately four months in prison. Binance, the company he founded, also faced over $4 billion in penalties as part of U.S. enforcement measures.
Political Fallout and Lawmakers’ Concerns
Representative Maxine Waters, a leading Democrat on the House Financial Services Committee, described the pardon as both “appalling” and predictable. She criticized the administration for allegedly prioritizing affluent insiders. According to her office, CZ reportedly spent extensive time lobbying President Trump and his family, allegedly channeling billions into a Trump-associated crypto enterprise, World Liberty Financial.
Seeking clarity, Waters and other Democrats have demanded detailed records and justifications for the actions taken.
Market Reaction to the Presidential Pardon
The financial markets responded promptly to the news. Binance’s native cryptocurrency, BNB, experienced a notable rise in intraday trading, with some reports indicating a surge between 3% and 8% at its highest points. Trading platforms recorded an approximate 35% increase in volume compared to recent averages, as investors considered the potential reduction in regulatory risks for Binance-affiliated assets.
Legal Context and Community Response
Zhao’s legal troubles originated from accusations under the Bank Secrecy Act for neglecting to set up a robust anti-money-laundering system. Though the pardon clears his federal criminal record, it does not negate the facts of the case or the company’s settlements.
Expressing his gratitude, CZ shared his hopes to contribute positively to U.S. cryptocurrency initiatives moving forward.
“Deeply grateful for today’s pardon and to President Trump for upholding America’s commitment to fairness, innovation, and justice. Will do everything we can to help make America the Capital of Crypto and advance web3 worldwide.” – CZ 🔶 BNB (@cz_binance) October 23, 2025
Political Reactions and Future Implications
Senator Elizabeth Warren and other Democratic figures criticized the pardon, citing concerns about fairness and potential undue influence. Conversely, some Republican lawmakers viewed the pardon as a strategic step to rejuvenate the U.S. involvement in the cryptocurrency sector.
Reports have surfaced indicating that Congress is contemplating oversight measures to investigate any private discussions, contributions, or contracts connected to this pardon. However, the exact financial connections mentioned by Waters have not been fully disclosed in public documents.
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