CZ served four months in prison after pleading guilty to violating the Bank Secrecy Act by failing to maintain an effective anti-money laundering program at Binance. His conviction and subsequent pardon have raised questions about the relationship between politics and the crypto industry, especially given the Trump family’s own cryptocurrency business interests.

The Original Conviction

In November 2023, CZ pleaded guilty in a Seattle federal court to failing to maintain effective anti-money laundering controls at Binance. The case was part of a massive settlement where Binance agreed to pay $4.3 billion to the U.S. Department of Justice.

Federal prosecutors accused Binance of helping criminals move money connected to serious crimes. According to court documents, the exchange facilitated transactions linked to terrorist organizations including Hamas and ISIS, child sexual abuse material, ransomware attacks, and drug trafficking. The company also served users from sanctioned countries like Iran, North Korea, Syria, and Russia.

CZ was sentenced to four months in prison in April 2024, though prosecutors had requested three years. He paid a $50 million personal fine and agreed to step down as Binance’s CEO. The judge gave him a lighter sentence than prosecutors wanted, noting his cooperation and clean record before the case.

Source: @CGaspariono

Why Trump Issued the Pardon

White House press secretary Karoline Leavitt explained the decision in a statement. She said CZ was “prosecuted by the Biden Administration in their war on cryptocurrency” and claimed there were “no allegations of fraud or identifiable victims.”

Leavitt also criticized the Biden administration’s handling of the case, stating that the three-year sentence prosecutors requested was “so outside Sentencing Guidelines that even the Judge said he had never heard of this in his 30-year career.” She concluded by declaring that “The Biden Administration’s war on crypto is over.”

The pardon follows months of lobbying efforts by Binance and comes after CZ publicly confirmed in May 2025 that he had requested presidential clemency.

Trump Family’s Crypto Connections

The pardon announcement has drawn attention because of the Trump family’s financial ties to the cryptocurrency industry. Trump and his sons launched World Liberty Financial, a crypto venture that has generated approximately $4.5 billion since the 2024 election.

According to Bloomberg reporting, Binance wrote code for World Liberty Financial’s stablecoin called USD1. The connection goes deeper: an Abu Dhabi state-backed firm announced plans to use $2 billion worth of USD1 to finance an investment in Binance.

Trump’s financial disclosure report shows he made over $57 million from World Liberty Financial last year. A Trump-affiliated entity owns 60 percent of the company and receives 75 percent of all revenue from coin sales.

These business relationships have raised concerns among ethics experts and lawmakers about potential conflicts of interest. Critics argue that pardoning someone whose company has extensive financial dealings with the Trump family creates an appearance of impropriety.

Market and Industry Response

The crypto market reacted positively to the news. BNB ($1,138.38), the native token of the Binance ecosystem, jumped approximately 5% immediately after the pardon was announced, reaching $1,138.

Industry leaders welcomed the decision. Charles Hoskinson, founder of Cardano, said the case represented “weaponization of the justice department against our industry.” Bitcoin advocate Anthony Pompliano called it great news and stated there is “no place for political targeting in the US justice system.”

However, the pardon also sparked debate about accountability in the crypto industry. Some observers questioned whether a person who admitted to failing to prevent money laundering at his exchange should be cleared of criminal consequences, regardless of political views about crypto regulation.

What Happens Next for CZ and Binance

Despite the pardon, CZ remains barred from managing Binance under the terms of the 2023 settlement. The agreement prohibits him from holding executive positions at the exchange, though this restriction’s duration has been subject to interpretation.

CZ has stated publicly that he has no desire to return as Binance’s CEO. In December 2024, he clarified his position, saying: “No wish to be CEO again. But definitely wouldn’t mind a pardon.”

Since leaving Binance, CZ has focused on other ventures. He launched Giggle Academy, an educational platform targeting underserved communities, particularly adult women and children without access to basic education. He continues to invest in blockchain technology, artificial intelligence, and biotechnology through his venture capital activities.

The pardon allows CZ to conduct business operations more freely in the United States. If Binance receives similar relief from its corporate settlement obligations, the exchange could expand its U.S. operations. Earlier in 2025, Trump pardoned BitMEX executives, setting a precedent for crypto-related pardons.

Binance continues to operate under a compliance monitor as part of its settlement. The company installed Richard Teng, a former financial regulator from the United Arab Emirates and Singapore, as CEO after CZ stepped down. Teng’s appointment was meant to signal Binance’s commitment to following regulations.

A New Chapter in Crypto Politics

This pardon represents a significant shift in how the federal government approaches cryptocurrency enforcement. The Trump administration has positioned itself as more favorable to digital assets compared to the previous administration.

The decision sends a clear message to the crypto industry about the current political climate. Whether this leads to more responsible innovation or weakens necessary oversight remains to be seen. What’s certain is that the intersection of politics, business interests, and cryptocurrency regulation has never been more complex or consequential.