U.S. President Donald Trump pardoned Binance founder Changpeng Zhao on October 23, 2025, sparking controversy among lawmakers and notable shifts in cryptocurrency markets.
The pardon evoked intense political debate and significant market reactions, with Bitcoin and Ethereum prices surging post-announcement.
Trump Pardons Zhao, Citing Lack of Criminality and Advisor Recommendations
President Trump has pardoned Binance founder Changpeng Zhao, who had previously pleaded guilty to violating the Bank Secrecy Act and paid a $50 million fine. President Trump stated that the pardon was granted based on recommendations from trusted advisors who suggested Zhao's actions did not constitute a crime and that he was unfairly prosecuted by the Biden administration. He indicated that he acted on the advice of "a lot of very good people" who informed him that Zhao's actions were not criminal.
This decision has ignited considerable debate regarding its implications for regulatory oversight and the broader cryptocurrency market. The pardon marks a significant development in the ongoing dialogue surrounding cryptocurrency regulation and its enforcement.
Cryptocurrency Markets React Positively to Zhao Pardon
Following the announcement of President Trump's pardon of Binance founder Changpeng Zhao, cryptocurrency markets experienced immediate positive movement. Bitcoin prices surged to $19,000, and Ethereum saw its trading value rise to $3,878. This market reaction underscores the significant impact of high-profile regulatory and legal developments on digital asset valuations.
Industry experts suggest that this pardon could influence the trajectory of proposed market structure legislation within the United States, potentially fostering a more favorable environment for cryptocurrency-related policies. The potential for increased volatility in Binance Coin (BNB) is also noted, given Zhao's continued involvement with Binance's operations.
Historical Precedents: BitMEX and Binance Pardons
The pardon of Changpeng Zhao echoes a similar event earlier in the year when President Trump pardoned executives from BitMEX. That previous pardon facilitated the exchange's operational activities within the United States. Such presidential actions carry substantial weight, influencing the governance tokens of associated platforms, such as BNB, and the development of decentralized finance (DeFi) protocols linked to prominent exchanges.
Analysts from Kanalcoin suggest that while this action might lead to increased scrutiny on cryptocurrency regulation, it could also serve as a catalyst for innovation within the sector. Historical patterns observed after similar pardons indicate a potential period of accelerated growth for cryptocurrency exchanges, possibly driven by a renewed sense of investor confidence and market expansion.