US President Donald Trump is reportedly considering a pardon for Binance co-founder and former CEO Changpeng Zhao, commonly known as CZ. This development comes amid heavy liquidations in the crypto market after the Republican president also announced plans for a 100% tariff on Chinese goods.
Could CZ Be Heading Back To Binance?
In a report on October 10, Fox Business reporter Charles Gasparino shared an inside scoop stating that discussions in the White House had commenced over a potential presidential pardon for Binance’s former boss, CZ. The analyst explains that this motion appeared to have sprung out of a partial belief in Trump’s camp that the fraud case against the Chinese-born Canadian was “weak” and that his felony conviction and prison sentence were disproportionate.In 2023, US authorities charged Changpeng Zhao and Binance with violating the Bank Secrecy Act and failing to maintain adequate anti–money laundering (AML) controls. According to the US Department of Justice, Binance allowed illicit funds to move through its platform, including transactions linked to sanctioned countries and criminal enterprises such as the Lazarus group of North Korea.
CZ personally pleaded guilty to one count of failing to maintain an effective AML program, admitting that he did not implement sufficient safeguards to prevent Binance from being used for unlawful purposes. The plea deal was part of a broader settlement in which Binance agreed to pay over $4.3 billion in penalties, one of the largest corporate fines in US history.
As part of the agreement, CZ also stepped down as Binance CEO and was sentenced to four months in federal prison in April 2024. Following his conviction, Zhao temporarily relinquished direct control of Binance but continues to retain his ownership stake. A potential presidential pardon could effectively erase CZ’s conviction and restore his legal standing. However, likely, the former Binance boss remains away from the formal leadership of the exchange due to Binance’s agreement with the DOJ under the oversight of a multi-year independent compliance monitor.
Presidential Pardon Still Some Time Away
Amid the positive news for Zhao, Gasparino has also noted that the presidential pardon may take some time as the US government is facing critical issues, including managing the conflict in the Gaza Strip and Ukraine, while also teasing another tariff battle with China.
Notably, Trump has now threatened to impose a 100% tariff on all Chinese goods after the Asian nation announced plans to implement sweeping export controls on almost every product starting from November 1, 2025. In response, the general crypto market is down by 9.63% and is presently valued at around $3.72 trillion. Within this time, Bitcoin, the market leader, has declined by 7.81 with prices now set around $111,900.
Featured image from Reuters, chart from Tradingview
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