On Thursday, the White House officially announced that President Donald Trump has issued a full pardon to Changpeng Zhao, the founder of Binance who had been convicted. This unexpected development reverberated across political and cryptocurrency communities alike. Following the announcement, Binance’s native cryptocurrency, BNB, experienced a rapid surge, climbing more than 5% within just an hour.
White House Press Secretary Karoline Leavitt, in a statement reported by Reuters, emphasized that Trump exercised his constitutional prerogative by pardoning Zhao, who had been prosecuted under the Biden administration’s intensified crackdown on the crypto sector.
Zhao, a prominent figure in the cryptocurrency space, had resigned from his CEO position at Binance as part of a plea deal. This agreement included Binance paying a historic $4.3 billion settlement, while Zhao served a four-month prison term after being found guilty of inadequate anti-money laundering compliance.
The presidential pardon effectively nullifies Zhao’s federal conviction, potentially paving the way for his renewed involvement in the crypto industry. However, it remains unclear if he will resume a leadership role at Binance.
The market’s reaction was immediate and pronounced. BNB’s value jumped over 5%, with some sources noting a 5.5% increase, pushing the token close to the $1,145 mark.
Prior to the pardon announcement, BNB had already been on an upward trajectory fueled by speculation about Zhao’s potential clemency. The token had recently reached new highs amid growing optimism.
This price movement highlights how closely Zhao’s legal circumstances influence investor sentiment. Clearing his record is broadly seen as a boost to confidence in both Binance and the BNB Chain ecosystem.
The Implications of Changpeng Zhao’s Pardon: Political, Legal, and Market Perspectives
Trump’s decision to pardon Zhao aligns with his recent pattern of granting clemency to notable business leaders. Earlier in the year, he pardoned the founders of BitMEX, Ross Ulbricht-the creator of the Silk Road marketplace sentenced to life for facilitating illicit bitcoin transactions-the Nikola founder involved in fraud allegations, and commuted the sentence of an executive from Ozy Media.
This pardon also arrives amid congressional inquiries into possible financial entanglements. In May 2025, lawmakers sought details regarding connections between Zhao’s pardon request, Binance’s dealings, the Trump-affiliated crypto firm World Liberty Financial, and a $2 billion investment arrangement.
Supporters within the White House have framed the pardon as a necessary correction to what they describe as excessive regulatory actions against cryptocurrency under the Biden administration. Leavitt’s remarks criticized previous enforcement efforts as stifling innovation.
Nevertheless, the pardon has sparked debate over its timing and the potential conflicts of interest involved. Critics argue that the close ties between Binance, Zhao, and Trump-related ventures raise concerns about favoritism and political bargaining.
From a regulatory perspective, the pardon does not eliminate all legal hurdles for Binance or the BNB token. U.S. regulators may continue to impose oversight or pursue civil litigation under securities and financial laws.
For Binance, the pardon could open doors to expanding its U.S. presence, previously hindered by the stigma of Zhao’s conviction. Analysts suggest that a cleared Zhao might encourage both institutional and retail investors to increase their engagement with Binance and the BNB ecosystem.
However, significant challenges remain. Binance must still navigate the repercussions of its legal settlement, maintain rigorous compliance, face ongoing international regulatory scrutiny, and rebuild trust among a cautious public.
Zhao’s future involvement is also uncertain. While the pardon removes his criminal record, whether he will return to an executive position, exert influence behind the scenes, or serve as an advisor is yet to be determined. Industry insiders warn that a high-profile comeback could provoke renewed political and regulatory resistance.