The White House is growing the chances of pardoning Changpeng “CZ” Zhao. Sources say Trump is leaning towards the decision, despite the political risks.
Trump considers pardoning Binance founder Changpeng “CZ” Zhao
Discussions have intensified in the White House about the possibility of pardoning Changpeng “CZ” Zhao, the co-founder of the Binance crypto exchange, who served a four-month prison sentence in the United States last year.
This was reported by Fox Business journalist Charles Gasparino, noting that “sources close to CZ” claim that discussions in Washington are “heated up.”
According to Gasparino, many of Donald Trump’s associates believe that the criminal case against Zhao was “weak” and did not deserve a federal sentence and prison sentence.
CZ may return to Binance
The Fox Business journalist added that Trump is leaning towards a pardon, which could pave the way for Zhao to return to Binance, as he still remains the exchange’s largest shareholder.
However, the administration is concerned about how this will look from a political point of view, given the Trump family’s active involvement in the crypto industry.
Earlier in May, CZ said in a podcast that he had filed for clemency after his release from prison, although he had previously denied this information.
Market reaction and details of the sentence
After the news of the possible pardon, the probability of a positive decision increased sharply – on the Kalshi prediction platform, the indicator rose by more than 20%.
In September, Axios reported that current Binance CEO Richard Teng confirmed that while CZ remains a major shareholder, his agreement with the US government provides for a lifetime ban on any management activity in the company.
Zhao was convicted in 2023 after pleading guilty to violating anti-money laundering laws. He was sentenced to four months in prison and fined $50 million, while Binance itself agreed to pay $4.3 billion in one of the largest corporate settlements with the US government in history.
What’s next
If Trump grants the pardon, it would set a precedent for the entire crypto industry — and signal that the White House is ready to rethink its approach to regulating digital assets.
Analysts believe that CZ’s pardon could be a symbolic gesture by Trump toward a “crypto-friendly pivot” in the US, in stark contrast to the policies of his predecessors.
Related: Google detects Lazarus Group attack on CZ’s Binance account
