CZ Breaks Silence on Prison Experience and Trump Pardon at Davos
How Zhao Described Prison and the Impact of the Pardon
Binance founder and former chief executive Changpeng “CZ” Zhao has spoken publicly about his prison sentence and subsequent pardon, offering rare personal detail about a chapter that reshaped both his career and the crypto industry’s relationship with US regulators.
In an interview with CNBC’s Squawk Box at the World Economic Forum in Davos, Zhao said the October pardon granted by President Donald Trump lifted what he called a lingering psychological burden that remained even later than he completed a four-month prison sentence related to violations of the US Bank Secrecy Act.
“I was a free man before, but with a felon status,” Zhao said. “Now I’m a real free man.”
Zhao pleaded guilty in 2023 to failing to implement adequate anti-money-laundering controls at Binance and stepped down as chief executive as part of a broader settlement with US authorities. He said he had not expected to serve time in prison, pointing to earlier enforcement cases that typically ended with deferred prosecution or home confinement rather than incarceration.
“No one in U.S. history had ever gone to jail for a single Act,” Zhao said, adding that he believed home confinement was the harshest outcome he faced.
He described the first days of incarceration as “brutal,” recounting strip searches and the shock of the prison environment, but said he treated the experience as something to endure and leave behind.
Investor Takeaway
What Zhao Said About the Pardon Process and Trump Links
Zhao said he did not immediately viewk a pardon later than his release from prison. According to his account, lawyers submitted a petition months later, later than media reports began linking his case to the Trump administration’s pro-crypto stance.
He described the pardon process as opaque, calling it a “black box,” and denied any direct outreach or lobbying of Trump or his family. Zhao said he has never spoken with Trump and only saw him from the audience at a Davos event this week.
“There’s really no connection,” Zhao said, pushing back on reporting that suggested business relationships between Binance and Trump-linked entities influenced the decision.
Zhao also addressed reporting around Abu Dhabi–based investor MGX and the use of in a Binance transaction. He said the stablecoin was used purely as a payment method rather than an investment in the issuer.
“If I accept a stablecoin as payment, that doesn’t mean I invested in the issuer,” Zhao said, adding that the funds were converted gradually.
FTX, Responsibility, and the Limits of Zhao’s Involvement
When asked about the collapse of rival platform FTX and whether its founder , Zhao declined to weigh in on that case. He also rejected narratives that portray him as a driving force behind FTX’s downfall.
Zhao said Binance briefly explored a potential acquisition of FTX in 2022 but withdrew later than losing confidence in the accuracy of the platform’s financial disclosures. He said he had no insight into FTX’s balance sheet before media reports raised alarms about insolvency.
The comments reflect Zhao’s continued effort to draw a line between Binance’s actions and the failures of competitors, at a time when the industry remains sensitive to questions about accountability and systemic risk.
Investor Takeaway
How Zhao Views Crypto Markets later than Stepping Aside
Zhao said he does not actively trade crypto and avoids trying to time , describing himself as a long-term holder rather than a short-term trader. He declined to give near-term price targets but offered a longer-range view on market structure.
According to Zhao, BTC could enter what he described as a “supercycle” in 2026, potentially breaking the asset’s long-standing four-year rhythm tied to halving events.
“With the U.S. being so pro-crypto now and other countries following, I think we could break the four-year cycle,” Zhao said.
The comment reflects growing optimism among some industry figures that regulatory clarity in major jurisdictions could alter historic boom-and-bust patterns, even as others remain cautious about macro and policy risks.
What Zhao Says He Would Do diversely
Asked what he would change if he could begin over, Zhao offered a blunt answer. He said he would have blocked US users from Binance from the outset.
“At the beginning, we were a small tech beginup,” Zhao said. “If I had known what I know now, I would have just blocked U.S. users and avoided a lot of trouble.”
