Nikolas Sargeant
The Trump administration is reportedly considering a presidential pardon for Changpeng Zhao, the co-founder of cryptocurrency exchange Binance who served four months in prison after pleading guilty to money laundering charges. According to sources cited by Fox correspondent Charles Gasparino, Trump insiders believe the case against Zhao was weak and didn't warrant felony charges or jail time. A pardon could potentially allow Zhao to return to Binance, where he remains the largest shareholder despite being forced to step down as CEO.
SCOOP: People close to @cz_binance, the former @binance chief who spent some time in the can amid the Biden Admin's crackdown on all things crypto, say discussions inside the White House are heating up on the possibility of a pardon from @realDonaldTrump. Many Trump insiders…
— Charles Gasparino (@CGasparino) October 10, 2025
Zhao pleaded guilty to violating the Bank Secrecy Act in November 2023 as part of a settlement that saw Binance pay a hefty fine and Zhao personally fined millions. In early May 2025, Zhao confirmed on the Farokh Radio podcast that his legal team had officially applied for a pardon, explaining that media reports from Bloomberg and The Wall Street Journal prompted him to formalize the request. He has emphasized that he was never charged with fraud and claims to be the only person in U.S. history sentenced to prison for a single BSA violation with no other charges or prior criminal history.
The potential pardon faces some obstacles, particularly concerns within the White House about the optics given President Trump's business interests in the cryptocurrency sector. Trump and his family have various crypto ventures, including a memecoin and involvement with decentralized finance protocol World Liberty Financial, which have previously raised conflict-of-interest questions. Sources indicate that a final decision is expected soon, though the administration is juggling other pressing matters.
Industry insiders reportedly view Zhao's prosecution as an overreaction following the collapse of FTX and the conviction of Sam Bankman-Fried, who is serving a lengthy prison sentence for fraud. The Trump White House has taken a notably friendlier stance toward cryptocurrency, dismissing enforcement actions and pardoning other crypto figures including BitMEX founders and Silk Road creator Ross Ulbricht. Binance, Zhao, and the White House have not yet commented on the pardon reports.
