Zhao — widely known as “CZ” — was sentenced to four months in prison in April 2024 after pleading guilty to violating US money-laundering laws. His company, Binance, was ordered to pay $4.3 billion after investigators found it had allowed users to bypass sanctions and operate in violation of US regulations. Zhao completed his prison sentence in September 2024.

White House Press Secretary Karoline Leavitt said on Thursday that Zhao’s prosecution under the previous administration had been politically motivated. She argued that he was unfairly targeted “despite no allegations of fraud or identifiable victims,” calling the case an example of “overreach that severely damaged the United States’ reputation as a hub for innovation.”

“The Biden Administration’s war on crypto is over,” Leavitt declared.

President Trump’s decision reflects his administration’s increasingly favorable stance toward cryptocurrency. Since taking office, Trump has vowed to make the United States the “crypto capital of the world,” unveiling several initiatives aimed at integrating digital currencies into the broader financial system.

Shortly before his inauguration in January, Trump launched his own digital coin, signaling his personal endorsement of blockchain technology. In the months that followed, his administration proposed the creation of a national cryptocurrency reserve and new rules allowing Americans to invest retirement savings in digital assets.

The Wall Street Journal reported that Binance and its representatives had been lobbying for Zhao’s pardon for nearly a year. The paper also said members of the Trump family — whose crypto firm, World Liberty Financial, has been expanding globally — held private discussions with Binance earlier this year.

Binance, which remains registered in the Cayman Islands, has not yet commented on the presidential pardon. Despite facing intense regulatory scrutiny, it continues to dominate the global crypto trading market.

Zhao, who stepped down as Binance’s CEO in November 2023, expressed humility and accountability at the time of his resignation. “It’s not easy to let go emotionally, but it’s the right thing to do,” he wrote on X (formerly Twitter). “I made mistakes, and I must take responsibility.”

During the 2023 prosecution, US officials accused Binance of “wilful violations” that endangered national security. Then–Treasury Secretary Janet Yellen said the company’s failures had allowed illicit funds to move freely through its platform, benefiting “terrorists, cybercriminals, and child abusers.”

With Trump’s pardon, Zhao’s record is now cleared, and many in the cryptocurrency industry see it as a symbolic moment signaling the start of a new, more open chapter for digital finance in the United States.