Speculation Mounts Over CZ Pardon as Trump Ties Deepen
Social Media Change Fuels Speculation
A pardon could potentially clear the way for Zhao to resume an active management role at Binance, something specifically ruled out under the terms of his plea deal with U.S. officials. Binance itself has not commented publicly on whether Zhao might rejoin the company’s leadership.
Investor Takeaway
Trump’s History of Crypto Pardons
Zhao confirmed in May that he had directed lawyers to apply for a pardon from Trump. The request follows a series of crypto-related clemencies issued by the president, including and BitMEX co-founders Arthur Hayes, Benjamin Delo, and Samuel Reed. Trump’s willingness to intervene in high-profile crypto cases has fueled hopes among Zhao’s supporters that he may extend the identical leniency.
later than resigning in November 2023, Zhao initially said he had no plans to return as CEO. But reports of his ongoing influence, coupled with Trump’s increasing connections to Binance-linked ventures, have rekindled speculation. A pardon would not only rehabilitate Zhao personally but could also reshape Binance’s global positioning at a time when regulatory oversight is intensifying.
Binance Deal Under Lawmaker Scrutiny
Zhao served four months in prison in 2024 later than pleading guilty to failing to maintain an effective anti-money-laundering program. Binance agreed to pay a $4.3 billion settlement as part of the deal, with current CEO Richard Teng appointed to lead the platform. The agreement also subjected Binance to three years of compliance monitoring, a condition designed to restore regulatory confidence.
Yet the settlement remains politically contentious. Several U.S. lawmakers have raised concerns about executives and Treasury Department officials. In a letter sent Wednesday to U.S. Attorney General Pam Bondi, three Democratic senators questioned whether Binance is viewking to fragileen the compliance monitor requirement — described as a “key oversight condition” of its 2023 settlement.
“Since May, President Trump and his family have increased their financial ties to Binance through their company World Liberty Financial, and just this week, news broke that Binance may be moving toward a potential deal with the Justice Department to drop its outside monitor,” the senators wrote. Senator Elizabeth Warren, one of the signatories, highlighted the risks of Zhao’s “financial entanglements with the President’s family” in the context of ongoing pardon speculation.
Investor Takeaway
What’s Next for CZ and Binance
For now, Zhao remains outside Binance’s formal management structure, with Teng steering the platform through its compliance obligations. But speculation over a pardon highlights the blurred lines between U.S. crypto regulation and political influence. Trump has not publicly commented on Zhao’s case, though his past interventions suggest the possibility cannot be dismissed.
For Binance, the risks are significant. A CZ return could galvanize loyal users but reignite concerns among regulators. Conversely, if lawmakers succeed in blocking any changes to the compliance agreement, Binance may find itself forced into stricter operational oversight just as it viewks to expand in the U.S. market.
As 2025 unfolds, the question is not just whether Zhao will be pardoned, but whether the intersection of crypto markets, politics, and personal ties to Trump’s inner circle will reshape the trajectory of the .
