Backlash after Trump pardons former Binance CEO CZ
WASHINGTON (Reuters) – President Donald Trump’s decision to grant a full pardon to Changpeng Zhao (CZ), founder of the world’s largest cryptocurrency exchange Binance, has created a storm of controversy in global politics and finance, with many observers calling it a “disturbing turn of events between political power and the cryptocurrency industry.”
Shocking move in the crypto world
The pardon, announced on October 23, effectively ends CZ’s criminal conviction for violating the Bank Secrecy Act and cross-border money laundering. It is the second time in his term that Trump has used his special powers to exonerate a controversial figure in the crypto world — after Ross Ulbricht (Silk Road) earlier this year.
Analysts say the move is a calculated political move to rally support from the crypto community ahead of the 2026 election.
“Trump is using crypto as a strategic tool to rally voters who support financial freedom,” said blockchain analyst Adam Cochran. “But pardoning someone who pleaded guilty to global money laundering is disgusting even by Trump’s standards.”
Financial Links Between Binance and Pro-Trump Companies
Shortly after the pardon announcement, a series of transaction data was discovered that showed financial links between Binance-related entities and investment funds linked to the Trump Organization.
Suspicious transfers worth tens of millions of dollars were made in the weeks before the pardon was signed, raising suspicions of a political-financial exchange.
While the White House insists that “all pardons are legally binding,” members of Congress, including Senator Elizabeth Warren, have called for an independent investigation into the relationship between Trump, Binance, and crypto funds.
Impact on the global crypto industry
The CZ pardon is not just a political story, but could also reshape how countries view crypto regulation.
Experts warn that the move could undermine international anti-money laundering efforts and send the wrong signal that the industry’s financial heavyweights are “immune to the law.”
“This is the first time a convicted leader in the digital finance sector has been granted a full pardon,” said Bloomberg Crypto’s financial expert. “It could set a dangerous precedent where the rules are bent for political influence.”
Community Divided – CZ Silent
While crypto advocates hailed Trump as “the most pro-crypto president in history,” the majority of the community reacted harshly. The hashtag #PardonForProfit trended on Twitter, garnering millions of interactions in just a few hours.
CZ, who served a four-month prison sentence and paid a $50 million fine, has not made an official statement since his pardon. However, accounts associated with him have moved large amounts of BTC from personal wallets to new ones, according to data from Arkham Intelligence.
🧩 Conclusion
CZ’s pardon is shaking up the global financial world, raising questions about the boundaries between political power, finance, and legal ethics in the blockchain era.
If this trend continues, the impact of politics on cryptocurrencies could be deeper than ever — and the risk of losing control of the decentralized financial system will no longer be a distant prospect.
