"Biden administration’s war on cryptocurrency is over." This was the official declaration made by White House Press Secretary Caroline Levitt in October 2025. Shortly before, U.S. President Donald Trump had formally signed a pardon for Binance founder CZ.
This decision not only marks a major shift in U.S. cryptocurrency policy but also paves the way for the return of Binance, the world’s largest crypto exchange.
01 Pardon Details: From Prison Sentence to Full Freedom
On October 23, 2025, President Trump officially signed a pardon for Binance founder CZ. The decision stemmed from Trump’s sympathy toward the argument that CZ and other crypto industry figures had been "persecuted."
White House insiders considered the case against CZ to be "rather weak and absolutely not grounds for felony charges or imprisonment."
Under the terms of the pardon, CZ’s previous four-month prison sentence and subsequent penalties for violating the U.S. Bank Secrecy Act were fully revoked. The $50 million fine paid personally by CZ, along with Binance’s payment of over $4 billion in fines as part of the prior plea agreement, had already been fulfilled.
Explaining his decision, Trump said: "I pardoned him at the request of many outstanding people. Many said he didn’t commit a crime at all."
02 Looking Back: CZ and Binance’s Legal Journey
To understand the significance of this pardon, we need to revisit the legal history of CZ and Binance in the United States.
In November 2023, CZ reached a plea agreement with the U.S. Department of Justice, admitting that Binance had failed to implement effective anti-money laundering procedures, violating the Bank Secrecy Act.
Prosecutors accused Binance of facilitating transactions that circumvented sanctions, lacking compliance controls, and even enabling trades involving the Palestinian militant group Hamas and suspected criminals.
As part of the settlement, CZ stepped down as Binance CEO and paid a $50 million fine. Binance pleaded guilty and paid over $4 billion in fines, making it one of the largest corporate settlements in U.S. history.
Additionally, Binance was required to undergo three years of independent compliance monitoring, and CZ was permanently barred from "managing or operating" Binance.
On April 30, 2024, CZ was sentenced by a U.S. federal court to four months in prison. Notably, CZ became the only person in U.S. history to be incarcerated solely for a Bank Secrecy Act violation.
03 The Road to Pardon: Effort and Political Maneuvering
CZ’s pardon was no accident—it was the result of concerted effort and political maneuvering.
In March 2025, The Wall Street Journal reported that representatives of the Trump family had been in talks with Binance to acquire shares in Binance.US, while CZ was seeking a presidential pardon. Although CZ firmly denied the report on social platform X that same day, he also remarked, "No felon would mind being pardoned."
On May 7, 2025, CZ publicly confirmed on a podcast that he had formally submitted a pardon application to the Trump administration. He revealed, "We only applied after seeing articles from Bloomberg and The Wall Street Journal. I thought, since they’re writing about it, we might as well make it official."
Crucially, on August 13, 2025, CZ hired lobbyist Chase McDowell, who has close ties to Donald Trump Jr., specifically to advocate for his presidential pardon.
Disclosures show that Binance paid as much as $450,000 in lobbying fees for this effort.
04 Market Reaction: Four Layers of Ripple Effects
News of Trump pardoning CZ sent shockwaves through the crypto market, triggering a chain reaction with four distinct layers of ripple effects.
First Ripple: Binance Ecosystem Assets Surge
At the epicenter, Binance-related assets saw immediate gains. BNB price soared from $1,076 to $1,161, a 24-hour jump of 15%.
Ecosystem project ASTER rallied in tandem, with gains exceeding 48% at one point and closing up 10%. This rebound not only restored market confidence lost to prior compliance risks, but also directly drove Binance Chain DeFi total value locked (TVL) back up to $23 billion.
Second Ripple: Meme Coin Frenzy
CZ’s previous interest in meme coins created a butterfly effect. Binance Life (BABYDOGE) rose from $0.23 to $0.28, while FOUR tokens surged over 114% in a single day.
These small-cap coins, each with a market value under $1 billion, are highly susceptible to sentiment-driven swings due to low liquidity, making them a battleground for leveraged traders. OKX data shows that related contract trading volume spiked 270% within three hours of the news breaking.
Third Ripple: Public Company Stock Movements
BNB treasury-holding companies saw clear capital inflows. U.S.-listed BNB Network (BNC) shares rose 18%, and Nano Labs (NA) climbed 6.2%.
Of particular note was biotech firm Applied DNA Sciences (BNBX), whose anti-counterfeiting traceability project with Binance saw a surge, hitting daily limit-up with turnover exceeding 45%. This "crypto-stock linkage" phenomenon reflects deepening crypto capital penetration into traditional markets.
Fourth Ripple: Trump Family Assets Rebound
As a politically connected party, the Trump family’s crypto project WLFI reached a pivotal turning point. Its price rebounded from $0.07 to $0.14, a 24-hour gain of 100%. Affiliate ALT5 Sigma (ALTS) also saw its stock rise 13.4%.
05 Underlying Reasons: Interests and Regulatory Shifts
Trump’s decision to pardon CZ was driven by clear vested interests and policy considerations.
CZ spent months lobbying Trump and his family, while channeling significant funds into Trump family crypto ventures, notably World Liberty Financial (WLF).
Even while CZ remained under federal investigation, Binance established lucrative partnerships with WLF, including listing WLF’s stablecoin $USD1 and accepting a $2 billion fund-based investment from Abu Dhabi.
This collaboration propelled $USD1 into the global top ten stablecoins, projected to generate hundreds of millions in annual revenue for Trump and his top Middle Eastern advisor, Steve Witkoff.
Meanwhile, the Trump administration is pushing for a comprehensive shift in crypto regulation. Trump nominated innovation-friendly Michael Selig as CFTC chair, signaling a possible transfer of regulatory authority from the SEC to the more market-friendly CFTC.
This shift aligns with the Trump administration’s narrative of "ending Biden’s war on cryptocurrency."
06 Controversy and Criticism: Power and Interests Intertwined
Trump’s pardon of CZ has also sparked considerable controversy and criticism.
The Wall Street Journal commented: "Any reasonable person could easily conclude that the president’s forgiveness can be bought." The paper further noted that the pardon "has the same stench as Bill Clinton’s pardon of financier Marc Rich."
Even billionaire Joe Lonsdale, co-founder of data mining company Palantir, called the pardon a stain on Trump’s record.
"The president received bad advice here; it looks like massive fraud is happening in his circle in this space," Lonsdale wrote on X.
The Journal’s editors added, "When James Madison and Alexander Hamilton designed the presidential pardon power, they ‘expected at least a minimum of presidential restraint.’"
07 Future Impact: Binance’s Return and a New Industry Landscape
The most immediate impact of Trump’s pardon of CZ is the removal of obstacles for Binance’s return to the U.S. market. Previously, regulatory noncompliance had created significant challenges for Binance’s U.S. operations.
The pardon could end the DOJ’s three-year compliance monitoring of Binance ahead of schedule, subject to approval from Trump or the Treasury Secretary.
On a broader scale, this event marks a major shift in the U.S. crypto regulatory environment. The Trump administration has not only pardoned CZ but also dropped investigations or cases against at least 89 companies.
At the same time, the Trump administration has weakened the SEC and disbanded the DOJ’s National Cryptocurrency Enforcement Team.
Together, these actions send a clear message: the Trump administration intends to take a more crypto-friendly approach, sharply contrasting with the Biden administration’s tough enforcement stance.
Outlook
With BNB breaking through the $1,100 mark and Binance Chain DeFi TVL rebounding to $23 billion, the crypto market appears to be entering a new cycle.
Trump’s pardon of CZ has not only changed the fate of one entrepreneur—it may reshape the global power dynamics of the crypto market.
The struggle between regulation and innovation is ongoing, and this time, the market’s ripple effects are only just beginning to spread.
