Binance comeback: Nothing stands in the way of CZ's return

INFBusiness
26.10.2025
Markets

It's official: Donald Trump has pardoned Binance founder Changpeng “CZ” Zhao. This clears the world's most famous crypto entrepreneur of his past sins – further fueling speculation about his return to Binance's CEO position.

“The Biden administration has pursued this case unnecessarily harshly,” said Trump spokeswoman Karoline Leavitt, commenting on the pardon of the Binance founder. The US president has now ended this “injustice.”

The victim himself expressed his “deep gratitude for today's pardon.” At the same time, he pledged to support the United States' path to becoming the “crypto center of the world.”

From imprisonment to pardon

As a reminder, Zhao pleaded guilty to violating US money laundering laws in 2023. Binance paid a $4.3 billion fine, Zhao resigned as CEO, and served a four-month prison sentence in 2024.

Part of the settlement included a three-year professional ban – CZ was actually barred from taking on a leadership role at Binance until 2026. With Trump's pardon, this restriction is now no longer valid. Legally, a return to the top would be possible, but politically, it is likely to be controversial.

The deal in the background

While Trump and CZ's supporters celebrate the move as a “victory for crypto freedom,” Democrats sharply criticize the pardon. Senator Maxine Waters wrote in a statement: “Trump is doing favors for crypto criminals that line his pockets.”

The Democrat is likely referring to developments reported by the Wall Street Journal in May of this year. CZ and his legal team are said to have sought direct contact with Trump. According to the report, Zhao helped connect Trump's crypto project “World Liberty Financial” (WLFI) with investors from Abu Dhabi and Central Asia.

Shortly thereafter, Abu Dhabi's sovereign wealth fund MGX invested approximately two billion US dollars in Binance – settled via WLFI's stablecoin USD1. Economic support in exchange for absolution and a beneficial step for the “crypto president's” wealth.

Both the WLFI co-founder and Zhao himself deny the allegations. The Binance founder wrote on X that it is a “smear campaign.”

CZ's return carries risks

For Binance, the pardon is a double-edged sword. On the one hand, CZ remains the face of Binance. He is considered a visionary and iconic figure in the community—and enjoys cult status. His return could follow a similar trajectory to Steve Jobs' return to Apple. A small indication of this: the BNB price jumped above the $1,100 mark immediately after the news.

On the other hand, CZ is polarizing. His X-post contains comments that are quite critical of his pardon. A return to the executive suite could pose a risk for Binance – especially if the crypto exchange pushes ahead with an IPO. A CEO with a criminal record – even if pardoned – could become a red flag for investors and reinforce the narrative of Trump's “indulgence trade.”

It is conceivable that CZ's return could only take place in an advisory or strategic position – as an interim solution to avoid regulatory tensions and potential reputational risks.