On October 23, when President Trump signed the clemency order for Zhao Changpeng, the曲折fate of the Binance founder once again became a global focus. White House Press Secretary Levitt stated bluntly in the declaration: "The Biden administration's war on cryptocurrency is over."

Just four months ago, Zhao Changpeng was serving a sentence in a Seattle federal prison, having been sentenced to four months imprisonment for failing to establish an effective anti-money laundering mechanism and violating U.S. economic sanctions regulations. Now, not only is he free, but he has also received a presidential pardon, a shift that has raised questions about potential conflicts of interest.

From Prison Time to Presidential Pardon

Zhao Changpeng's fall was as rapid as his rise. In November 2023, the entrepreneur, who had once topped the list of richest Chinese individuals with a fortune of $94.1 billion, pleaded guilty to violating U.S. anti-money laundering laws. Binance paid a record $4.3 billion fine, and he himself stepped down as CEO.

U.S. Attorney General Merrick Garland noted at the time, "Binance became the world's largest cryptocurrency exchange in part because of the crimes it committed." U.S. Treasury Secretary Janet Yellen further criticized Binance for turning a "blind eye" to its legal obligations in the pursuit of profit, allowing funds to flow through its platform to terrorists, cybercriminals, and child abusers.

In April 2024, a Seattle federal court sentenced Zhao Changpeng to four months in prison, far less than the three-year sentence initially sought by prosecutors. The judge told Zhao Changpeng, "No one, regardless of wealth, power, or status, is immune from prosecution or above the law of the United States."

Now, Trump's clemency order has erased Zhao Changpeng's criminal record, clearing obstacles for his return to the cryptocurrency stage.

The Political Deal Behind the Pardon

Trump's decision to pardon Zhao Changpeng did not come without clues. In March 2025, The Wall Street Journal reported that representatives of the Trump family had held talks about acquiring a stake in the cryptocurrency exchange Binance.US.

The report at the time indicated that Zhao Changpeng, having served his four-month sentence after pleading guilty, had sought leniency from the Trump administration. Although Zhao Changpeng denied the related reports on platform X, the contact between the Trump family and Binance had already raised external questions about potential conflicts of interest.

According to The Wall Street Journal report, the cryptocurrency ventures operated by the Trump family since the 2024 election had already yielded profits of $4.5 billion and involved a cooperative relationship with a trading platform quietly managed by Binance. This pardon decision was therefore viewed with suspicion of being a potential quid pro quo.

Trump described his clemency decision as ending the Biden administration's "political persecution" of the crypto industry. But this explanation struggles to conceal the possible commercial interests linking his family and Binance.

Zhao Changpeng's Rise and Fall

Zhao Changpeng's story is itself a microcosm of the cryptocurrency industry. Born in 1977 in Jiangsu, China, he immigrated to Canada with his parents at age 10. During his teenage years, he worked at a Chevron gas station, McDonald's, and also as a volleyball referee.

At age 13, his father bought him an IBM-compatible 286 computer, an investment that helped set him on a technical path. Later, he earned an undergraduate degree in computer science from McGill University and subsequently developed systems for the Tokyo Stock Exchange and Bloomberg's futures trading software.

In 2013, Zhao Changpeng first learned about cryptocurrency during a poker game. He later sold his apartment in Shanghai and invested approximately $1 million in cryptocurrency at around $600 per coin. Even though the Shanghai property doubled in value while the cryptocurrency holdings halved, he remained bullish on the latter.

In 2017, Zhao Changpeng founded Binance in Hong Kong. As cryptocurrency prices soared, Binance rapidly grew into the world's largest cryptocurrency exchange. By the end of 2021, Zhao topped the Forbes list of richest Chinese individuals with a fortune of $90 billion.

However, Binance's rapid expansion came with compliance risks. U.S. regulators alleged that Binance failed to establish an effective anti-money laundering mechanism and violated U.S. economic sanctions regulations. These issues ultimately led to his clash with the U.S. justice system.

The Legal and Political Reality Behind the Pardon

The U.S. President's pardon power originates from Article II, Section 2 of the U.S. Constitution. Except in cases of impeachment, the President has the power to grant reprieves and pardons for offenses against the United States. This power is almost unlimited, enabling Trump to vacate Zhao Changpeng's criminal conviction.

This was not the first time Trump used his pardon power. Before the end of his term in January 2021, he pardoned dozens of individuals, including the father of his son-in-law Jared Kushner, former National Security Advisor Michael Flynn, among others. U.S. media even reported at the time that Trump's allies and aides collected fees from individuals seeking presidential pardons.

For Zhao Changpeng, the practical legal value of the pardon might be limited, as he had already completed his sentence. But the symbolic significance is enormous – the pardon erases his criminal record, clearing the path for his return to the business and political arena.

A New Chapter in Cryptocurrency Regulation

Trump's decision to pardon Zhao Changpeng symbolizes a shift in U.S. cryptocurrency policy. The White House clearly stated that this move aims to end the Biden administration's harsh crackdown on the cryptocurrency industry.

In recent years, global regulation of cryptocurrency has been tightening. In 2023, following the bankruptcy of FTX, one of the world's top five cryptocurrency exchanges, regulation became stricter worldwide. The U.S. Securities and Exchange Commission also brought 13 charges against Binance.

Chen Jia, a researcher at the International Monetary Institute of Renmin University of China, pointed out that for the sustainable development of cryptocurrency in the future, it urgently needs breakthroughs in four areas: compliance, security, risk control, and liquidity. These are also the four foundational pillars for future U.S. crypto asset exchanges.

The clear signal sent by Trump through pardoning Zhao Changpeng is that his administration will adopt a more relaxed regulatory stance towards the cryptocurrency industry. This policy shift could potentially open the door for Binance to re-enter the U.S. market.

A New Beginning for Zhao Changpeng and Binance

For Zhao Changpeng, the pardon means a new beginning. In a September interview with Caixin, Zhao mentioned that he would devote more energy to the venture capital organization YZi Labs and had already been invited to serve as an official crypto industry advisor for multiple governments.

Binance may also see significant changes. Although required to completely exit the U.S. under the settlement agreement and appoint a monitor for five years, Trump's pardon could create favorable conditions for Binance's return to the U.S. market.

Simultaneously, Zhao Changpeng is also expected to be able to participate in Binance's management again. The previous judgment barred him from involvement in Binance's management or decision-making activities for three years after his release. The pardon could potentially lift this restriction.

The market reacted positively to Zhao Changpeng's return. Following the news of the pardon, BNB rose 7%, climbing back above $1100, and Bitcoin also returned to the $110,000 level. This market reaction indicates that investors view Zhao's return as a positive for the industry.

Trump's clemency order has rewritten the trajectory of Zhao Changpeng's fate, but the global contest surrounding cryptocurrency is just beginning. As the relationship between the Trump family and Binance deepens, and as Zhao Changpeng navigates among political leaders worldwide, the future of cryptocurrency will be tightly interwoven with geopolitics.

After his release, Zhao Changpeng promised that he "will do everything possible to help the United States become the cryptocurrency capital." The implication of this statement is profound. Wherever he goes, the future of cryptocurrency will be reshaped in the collision between national interests and the ideal of decentralization.