Trump Defends Binance Founder After Pardon: ‘What He Did Is Not Even a Crime’

Trump Defends Binance Founder After Pardon

Trump defends Binance founder after pardon, calling the prosecution of Changpeng Zhao, widely known as CZ, a politically motivated attack on innovation in the crypto space. The U.S. President spoke after granting Zhao a full presidential pardon, erasing his conviction for failing to comply with anti-money laundering (AML) laws.

Speaking to reporters on Thursday, Trump said, “He didn’t commit fraud, didn’t harm anyone, and didn’t steal a dime. What he did is not even a crime.” The statement came just hours after the official White House announcement confirming Zhao’s pardon.

The decision has stirred extensive debate, echoing through both political and financial circles. Zhao, who built Binance into the world’s largest cryptocurrency exchange, served a four-month prison term in 2024 after pleading guilty to violations under the Bank Secrecy Act. His conviction stemmed from improper AML measures within Binance’s operations, resulting in a record $4.3 billion settlement between the company and U.S. regulators.

From Conviction to Presidential Pardon

Changpeng Zhao’s legal troubles began in 2023 when U.S. prosecutors alleged that Binance failed to prevent illicit transactions, enabling users to evade sanctions. Although Zhao admitted to compliance lapses, the court did not find evidence of fraud or theft. Many in the crypto community saw his punishment as excessive.

White House Press Secretary Karoline Leavitt stated, “President Trump used his constitutional authority to issue a pardon to Mr. Zhao, who was targeted under the previous administration’s anti-crypto agenda. There were no victims, no fraud, and no credible claims of theft.”

Sources close to the administration told The Wall Street Journal that the pardon reflects President Trump’s broader goal to position the United States as a global leader in digital finance, contrasting the restrictive stance of the previous administration.

Trump’s Growing Crypto Agenda

This latest move adds to Trump’s pattern of pro-crypto actions since returning to office in 2025. Earlier this year, he announced plans to establish a National Cryptocurrency Reserve, supporting Bitcoin and other digital assets as strategic holdings. The President also signaled interest in working with private companies to build a blockchain-based federal payment system.

Political analysts note that the pardon may strengthen his ties with tech entrepreneurs and digital asset investors. It also marks a clear shift from earlier U.S. approaches that heavily penalized crypto entities for compliance oversights.

Trump’s campaign had pledged to “end the crypto witch hunt,” referencing the strict enforcement policies under President Biden. The Binance pardon now stands as the clearest execution of that promise.

What This Means for Binance and Crypto Regulation

With his conviction cleared, Zhao is legally allowed to resume his role at Binance or any other American enterprise. The company, while still under close regulatory review, is expected to re-open U.S. partnerships that were previously frozen due to compliance restrictions.

In an interview last month, Zhao said his focus remains on strengthening Binance’s global operations and ensuring higher transparency standards. He stated, “We’ve learned a lot. Compliance is no longer optional, it’s a core part of our business model.”

His reinstatement could pave the way for Binance’s renewed presence in the United States, further signaling a friendlier environment for crypto innovation.

Disclaimer

This article is intended for informational purposes only and should not be considered legal, investment, or financial advice. Cryptocurrency markets are volatile, and readers are encouraged to conduct their own research before making financial decisions.