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Discussions within the White House over a potential pardon for Binance co-founder Changpeng “CZ” Zhao are intensifying. Sources close to the matter say President Donald Trump might be leaning toward granting clemency. The latest development comes following internal debate over the case’s strength and its political implications.
According to Fox Business journalist Charles Gasparino, “discussions inside the White House are heating up” around the possibility of a pardon. Multiple individuals close to Zhao believe Trump advisers see the case against the Binance founder as weak and not deserving of imprisonment.
Some within the administration argue that Zhao’s prosecution was politically motivated and overly harsh. Yet, others express concern about the optics of pardoning a billionaire linked to the crypto industry, a space where Trump’s family has growing involvement through business ventures.
Sources indicate Trump is inclined to approve the pardon, which could allow Zhao to resume a more active role in the cryptocurrency sector. Still, the administration reportedly remains cautious about public reaction to such a decision.
Following the reports, prediction markets like Kalshi saw the odds of a CZ pardon rise by more than 40%. This surge reflects growing belief among traders that Trump could act before the end of the year.
In May, Zhao said during a podcast that he had applied for a presidential pardon from Trump after his release from prison. The Wall Street Journal previously reported that Zhao sought clemency, though he initially denied it before confirming the request later.
Gasparino noted on Friday that Trump “is leaning toward a pardon, which could set the stage for CZ’s return to the crypto exchange since he remains Binance’s largest shareholder.” Despite that, the administration remains mindful of the political consequences due to Trump’s deepening ties with digital assets.
Zhao’s legal troubles began in 2023 when he pleaded guilty to failing to maintain an effective anti-money laundering program during his time as Binance’s CEO. He received a four-month prison sentence and paid a $50 million fine. Binance also agreed to pay $4.3 billion in one of the largest corporate settlements in US history.
Although Zhao was released last year, he remains under a lifetime ban from managing Binance as part of his plea agreement. Binance’s current CEO, Richard Teng, confirmed in September that the lifetime restriction remains active despite Zhao’s ownership stake.
A Trump pardon may redefine the crypto industry, and it would have an impact on the US regulatory policy. Is it more likely to bolster the global reputation of the crypto industry by getting a high-profile crypto leader to confess or de facto foment accountability?
The White House has not made any official statement, but there have been reports that the politics and ethical considerations of the possible pardon are still being pondered by the White House officials. Senator Elizabeth Warren, among Democratic politicians, has urged more accountability regarding the cryptocurrency decisions made by the administration to prevent the occurrence of conflicts of interest.
The White House is reportedly weighing a possible pardon for Binance founder Changpeng Zhao, with President Trump said to be leaning toward approval. Sources reveal internal debates about political consequences and public perception amid the Trump family’s crypto involvement.
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