U.S. President Donald Trump has pardoned Changpeng Zhao, the convicted founder of the world's largest cryptocurrency exchange Binance. This was confirmed by a White House spokesman on Thursday – it is the latest in a series of pardons for crypto entrepreneurs and other white-collar offenders.

In an official statement, press secretary Karoline Leavitt said Trump "exercised his constitutional authority by pardoning Mr. Zhao, who was prosecuted by the Biden administration as part of its war on cryptocurrencies."

Zhao wrote on Platform X (formerly Twitter) that he was "deeply grateful for today's pardon and for President Trump, who upholds America's commitment to fairness, innovation and justice." He continued, "We will do everything we can to make America the crypto capital of the world."

Binance, the world's largest crypto exchange by trading volume, did not initially respond to requests for comment.

Zhao, a billionaire and one of the most influential figures in the crypto industry, stepped down as Binance's chief executive in 2023 after the company admitted guilt for failing to operate an effective anti-money laundering program. Binance then paid a fine of $4.3 billion.

Zhao, a Chinese-born Canadian citizen, personally paid a $50 million fine and spent around four months in prison after confessing. Still, he retained his shares in Binance while one of his close confidants took over.

The U.S. Constitution gives the president far-reaching powers to grant pardons for federal convictions or to mitigate prison sentences (commutations). Although many presidents do not use this privilege until the end of their term in office, there is no legal obligation to do so.

Zhao said in an interview in May that he had already submitted a clemency request to the Trump administration, although he had never spoken to the president in person.

The news of the pardon was first published by the Wall Street Journal.

Zhao's pardon is the latest in a series of pardons issued by Trump to crypto entrepreneurs and businessmen convicted of economic crimes.

Although the exact details of the pardon are not yet known, it could pave the way for Zhao's return to the company he co-founded in 2017. It could also allow Binance to expand its operations in the U.S. again as the crypto industry experiences a resurgence under the Trump administration.

The Republican president had gained broad support from the crypto scene in the 2024 election campaign after promising to reverse the Biden administration's restrictive crypto policies, which targeted numerous crypto companies for fraud and illicit financial transactions.

Back in March, Trump pardoned the three co-founders of crypto exchange BitMEX, who were found guilty in 2022 for failing to implement a Bank Secrecy Act-compliant anti-money laundering program.

Trump also pardoned the founder of the electric truck company Nikola, who had been convicted of fraud, and shortened the prison sentence of a manager of the now-defunct start-up Ozy Media.

Also in January, Trump pardoned Ross Ulbricht, the founder of the notorious darknet marketplace Silk Road, who had been sentenced to life imprisonment – but is still considered a symbolic figure in the crypto scene today.

If the Trump administration actually positions itself openly and benevolently towards tech and crypto companies and repeals or mitigates penalties already imposed, this sends a strong political signal:
➡️ regulatory relaxation,
➡️ business-friendly climate,
➡️ trust in innovation instead of criminalization of new technologies.

This could lead to a positive market reaction in the short term – i.e. rising prices for Bitcoin, Ethereum, Binance Coin (BNB) and other large projects. Investors usually see such political developments as a return of legal certainty and investor-friendliness.

In the long term, however, the effect depends on whether Trump's administration implements its line in practice – for example, by

In short, this decision could reinvigorate the crypto market and rebuild confidence in the US as a crypto location – especially after the restrictive years under Biden.

Do you want me to write you a short article paragraph for MFRadio.de – i.e. how the pardon could affect the crypto market and investors?

author. Tom Weyermann/MF editorial team
Sources: CyprusMail / REUTERS