Trump To Pardon CZ, But Will He Return To Binance?

Donald Trump is reportedly considering granting a presidential pardon to Binance founder Changpeng “CZ” Zhao. 

According to the White House rumors, Senior aides are said to be divided over the move. There are debates about potential backlash from regulators and lawmakers who view CZ’s conviction as a landmark case in financial crime enforcement.

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CZ’s Sentencing and Legal History

If granted, the pardon would effectively clear Zhao’s federal conviction despite his having already served his sentence. 

Zhao, the former CEO of Binance, pleaded guilty in 2023 to violating the Bank Secrecy Act for failing to maintain an adequate anti-money-laundering program. 

The US Department of Justice accused Binance of allowing transactions that bypassed sanctions and compliance controls.

As part of the settlement, Zhao stepped down as CEO, paid a $50 million fine, and served four months in federal prison. Binance itself paid $4.3 billion in penalties, one of the largest corporate fines in US history. 

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Zhao was released in mid-2024 and has since remained outside the US, barred from holding any executive role in Binance.

What the Pardon Would Mean for CZ

A presidential pardon does not reverse a conviction’s factual basis but removes its legal and civil consequences. 

For Zhao, that means erasing the felony from his record, restoring his ability to conduct business in the US, and lifting restrictions tied to federal background checks.

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Even though he completed his sentence, the conviction still limits his access to US financial institutions, visas, and corporate directorships. 

A pardon would symbolically and legally rehabilitate his status, making him eligible again for regulatory approval in future ventures.

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Could CZ Return to Binance?

Despite a potential pardon, Zhao would remain constrained by separate regulatory agreements reached with the US government. These prohibit him from holding any management or operational role at Binance for several years.

However, a cleared criminal record could allow him to re-enter the US financial and crypto markets as an investor, advisor, or founder of new ventures. 

It would also open doors to partnerships previously blocked by compliance barriers.

Still, reinstating him at Binance would likely trigger renewed scrutiny from US regulators and global partners, given ongoing concerns about the exchange’s compliance practices.

For now, no formal decision has been made. But the prospect of a pardon for one of crypto’s most recognizable names has already stirred sharp debate.