Trump administration insiders call CZ’s case “weak” as crypto community reacts
The White House is reportedly weighing a presidential pardon for Binance co-founder Changpeng “CZ” Zhao, who pleaded guilty to a single Bank Secrecy Act (BSA) violation in 2024 and served a four-month prison sentence earlier this year.
According to Charles Gasparino, a Fox Business correspondent and columnist for the New York Post, sources close to Zhao said Trump administration officials believe the case was overblown and “did not merit a felony conviction or jail time.”
“Trump… is leaning toward a pardon, which could set the stage for CZ’s return to Binance, since he remains its largest shareholder,” Gasparino wrote on X.
SCOOP: People close to @cz_binance, the former @binance chief who spent some time in the can amid the Biden Admin's crackdown on all things crypto, say discussions inside the White House are heating up on the possibility of a pardon from @realDonaldTrump. Many Trump insiders…
The move aligns with the Trump administration’s pro-crypto regulatory shift, which has included easing enforcement actions, advancing digital asset legislation, and issuing pardons to notable figures such as BitMEX co-founders and Silk Road’s Ross Ulbricht.
CZ responds: “Great news if true”
Zhao responded to Gasparino’s post on Friday, saying he was unaware of any formal decision but appreciated the news.
“Thank you, Charles. Great news if true. Minor correction — there were no fraud charges. I pleaded to a single BSA violation. I believe I’m the only person in U.S. history to serve time for that alone,” Zhao wrote on X.
Zhao, who stepped down as Binance CEO as part of his plea deal, remains barred from holding an executive position at the exchange. The 2024 settlement saw Binance pay $4.3 billion in fines, while Zhao personally paid $50 million.
Thank you Charles. Great news if true. 🙏🙏🙏🙏
Minor correction, there were no "fraud" charges. I believe they (the DOJ under the last administration) looked very hard for it, but didn't find any.
I pleaded to a single violation of Banking Secrecy Act (BSA). 🙏
While a pardon could soon be finalized, Gasparino noted that some White House officials have concerns about the optics, given President Trump’s growing crypto business interests — including his memecoin and DeFi venture, World Liberty Financial.
“The president is balancing multiple priorities — hostages, Gaza, Ukraine, and China trade — so this could take longer than expected,” Gasparino added.
According to Eleanor Terrett, host of the Crypto In America podcast, many executives view Zhao’s prosecution as a political overreaction following FTX’s collapse and the conviction of Sam Bankman-Fried, who is serving 25 years for fraud.
“CZ wasn’t accused of fraud like SBF — his sentence was regulators making an example out of crypto,” Terrett said.
As speculation mounts, prediction markets like Polymarket have seen odds for a “CZ presidential pardon” surge, underscoring how politically charged the case has become within the crypto industry.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.
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