US President Donald Trump signed a pardon for Binance founder Changpeng “CZ” Zhao on October 23, 2025, clearing a federal conviction tied to anti-money-laundering failures.
According to Reuters and the Associated Press, Zhao had pleaded guilty in 2023, paid a $50 million fine, and served about four months in prison. Binance itself agreed to more than $4 billion in penalties related to US enforcement actions.
Lawmakers Demand Answers
Representative Maxine Waters, the top Democrat on the House Financial Services Committee, called the pardon “appalling but unsurprising” and accused the administration of favoring wealthy insiders.
Based on reports from her office, Waters alleges that CZ spent months lobbying the president and his family and “funneled billions” into a Trump-linked crypto venture, World Liberty Financial. She and other Democrats said they want records and explanations.
Markets reacted quickly after the announcement. Trading data showed Binance’s native token BNB rising in intraday trading, with some estimates putting gains between about 3% and 8% at peak moments.
Reported trading volume jumped roughly 35% above recent averages on some platforms as traders digested the news. Some investors said the pardon might reduce near-term regulatory risk for Binance-related assets.
Legal Context And Reaction
Zhao’s conviction stemmed from charges under the Bank Secrecy Act for failing to establish an effective anti-money-laundering program.
He accepted a $50 million penalty and served approximately four months behind bars. The presidential pardon removes the federal criminal conviction from his record but does not erase the facts of the case or the company’s settlement.
According to multiple outlets, CZ expressed gratitude for the pardon and said he hopes to support US crypto efforts going forward.
Deeply grateful for today’s pardon and to President Trump for upholding America’s commitment to fairness, innovation, and justice.
Will do everything we can to help make America the Capital of Crypto and advance web3 worldwide.
(Still in flight, more posts to come.)…
— CZ
BNB (@cz_binance) October 23, 2025
BNB (@cz_binance) Political figures responded sharply. Senator Elizabeth Warren and other Democrats blasted the decision and raised concerns about influence and fairness.
Some Republican lawmakers framed the move as a reset for US engagement with the crypto sector. Reports have disclosed that congressional offices are weighing oversight steps to probe any private meetings, donations, or contracts tied to the pardon.
At the same time, exact financial links referenced in Waters’s statement remain incomplete in public filings.
Featured image from Getty Images, chart from TradingView