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CZ, as the crypto entrepreneur is widely known in the crypto community, was given a shortened 4-month jail sentence in November 2023 under former President Joe Biden, as part of a huge $4.3 billion deal with the Department of Justice. He was also barred from holding the top position in the exchange and its board.
Zhao has since stepped down from his role entirely, focusing instead on crypto philanthropy and engaging in dialogue with governments worldwide to promote digital assets.
Trump Blames Biden Administration for Harsh CZ Sentence
Trump, in his usual brash style, ordered the pardon and put the blame squarely on the Biden administration, accusing it of “punishing the crypto industry”.
“President Trump exercised his constitutional authority by issuing a pardon for Mr. Zhao, who the Biden Administration prosecuted in their war on cryptocurrency”, said Karoline Lewitt, the White House Press Secretary, in a statement.
 
“In their desire to punish the cryptocurrency industry, the Biden Administration pursued Mr. Zhao despite no allegations of fraud or identifiable victims”, Lewitt continued.
CZ Grateful for Trump Pardon
Zhao immediately took to X to thank Trump for the intervention. He tweeted:
“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 was instrumental in making Binance a global powerhouse. Still, because the digital currency economy is decentralized, he was caught in a major money laundering scandal involving large sums of crypto moving through Binance’s ecosystem.
Move Attracts Criticism
CZ’s money laundering case was a sweeping attempt by Biden to crack down on the widespread use of digital assets. However, despite CZ’s sentencing and massive fine, he emerged relatively unharmed. With Trump back in office, the sector has reached new heights with pro-crypto legislation like the GENIUS Act and discussions of a strategic bitcoin reserve.
But despite the crypto community largely viewing the pardon as a positive, some of Trump’s political rivals do not, calling it a case of corruption and a quid pro quo.
“First, Changpeng Zhao pleaded guilty to a criminal money laundering charge. Then, he boosted one of Donald Trump’s crypto ventures and lobbied for a pardon,” said Senator Elizabeth Warren, a democrat from Massachusetts.
It remains to be seen whether CZ will be back in Binance’s top slot after the presidential pardon. His return could boost the digital currency economy in the coming months.