Sources close to Changpeng Zhao, the former CEO of Binance, commonly known as “CZ,” indicate that discussions are intensifying within the Trump administration regarding the potential issuance of a presidential pardon for the beleaguered crypto executive, as reported by Charles Gasparino, a Senior Correspondent at FOX Business.

Zhao was previously a highly influential figure in the digital asset space, having served time following a plea agreement with the U.S. Department of Justice in 2023. This agreement included a conviction for money laundering and the payment of $4.3 billion in fines to Binance.

According to several insiders, many members of Trump’s inner circle now perceive the case against Zhao as politically motivated — a characteristic they attribute to the Biden administration’s more extensive crackdown on cryptocurrency.

As the largest individual shareholder of Binance, Zhao’s potential pardon could pave the way for his formal return to the exchange, which he founded in 2017 and transformed into the world’s leading Bitcoin and cryptocurrency trading platform.

Speculation surrounding a possible Trump pardon has persisted throughout much of the year, with reports suggesting that a decision may be imminent.

Background on Zhao

Zhao’s conviction in 2023 marked a significant and high-profile case in the government’s campaign against major cryptocurrency exchanges.

U.S. prosecutors accused Binance of facilitating illicit transactions with sanctioned entities and failing to establish adequate anti-money laundering controls. Following a guilty plea, Zhao stepped down as CEO and agreed to pay a personal fine of $50 million.

Zhao served a four-month prison sentence, beginning in April 2024 and concluding in September 2024. His incarceration included time at a low-security federal prison in California, followed by a stay in a halfway house.

Nevertheless, even critics of Binance have raised questions regarding the proportionality of the criminal charges against Zhao. Trump’s team reportedly views Zhao’s predicament as an opportunity to advocate for a “new era” of cryptocurrency policy—one that prioritizes innovation over punitive measures.

A decision regarding Zhao’s pardon may be expected before the end of the year; however, Trump’s attention is fragmented due to pressing foreign policy issues, including conflicts in Gaza, Ukraine, and renewed trade tensions with China. Additionally, discussions surrounding clemency often take longer than anticipated, according to Gasparino.

Currently, the cryptocurrency community remains vigilant. A pardon for CZ would signify not only a personal vindication for Zhao but also serve as a political statement: that the administration is genuinely receptive to engaging with the cryptocurrency sector.

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