Donald Trump is reportedly considering granting a presidential pardon to Binance founder Changpeng “CZ” Chao.
White House rumors say there is disagreement among senior aides about the move. Discussions are underway about a possible backlash from regulators and lawmakers who see CZ’s conviction as a landmark case in the crackdown on financial crimes.
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CZ sentencing and legal history
If granted clemency, Mr. Zhao’s federal conviction would effectively be lifted, even though he has already served his sentence.
Chao, Binance’s former CEO, pleaded guilty in 2023 to violating the Bank Secrecy Act for failing to maintain an adequate anti-money laundering program.
The U.S. Department of Justice accused Binance of allowing transactions to circumvent sanctions and compliance controls.
As part of the settlement, Zhao resigned as CEO, paid a $50 million fine and served four months in federal prison. Binance itself paid a $4.3 billion fine, one of the largest corporate fines in U.S. history.
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Chao was released in mid-2024 and has remained outside the United States since then, barred from holding any executive role at Binance.
What the amnesty means for CZ
A presidential pardon does not overturn the factual basis of a conviction, but it removes its legal and civil consequences.
For Mr. Zhao, that means erasing felonies from his record, restoring his ability to do business in the United States and lifting restrictions on federal background checks.
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Although he has completed his sentence, his conviction still restricts his access to U.S. financial institutions, visas, and corporate directorships.
The pardon symbolically and legally restores his status, making him eligible for regulatory approval again for future operations.
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Could CZ return to Binance?
Despite the possibility of a pardon, Mr. Zhao will remain bound by a separate regulatory agreement reached with the U.S. government. These will prevent him from holding any management or operational role at Binance for several years.
However, if his criminal record is cleared, he could potentially re-enter the U.S. financial and cryptocurrency markets as an investor, advisor, or founder of a new business.
It will also open the door to partnerships that were previously blocked by compliance barriers.
Still, his return to Binance would likely trigger new scrutiny from U.S. regulators and global partners, given ongoing concerns about the exchange’s compliance practices.
As of now, no official decision has been made. However, the prospect of one of the most famous names in the crypto industry being pardoned has already sparked intense debate.
