U.S. President Donald Trump has granted a presidential pardon to Changpeng Zhao (CZ), the co-founder of Binance, the world’s largest cryptocurrency exchange. Zhao had previously pleaded guilty to money-laundering-related charges in 2023 and was serving a four-month prison sentence.

According to two sources familiar with the matter, Trump’s decision clears Zhao of all federal convictions tied to the case.

White House press secretary Karoline Leavitt confirmed the move, saying the President “exercised his constitutional authority by issuing a pardon for Mr. Zhao, who was prosecuted by the Biden Administration in their war on cryptocurrency.”

The statement further criticized the previous administration’s handling of the case, calling Zhao’s sentence “excessively harsh.” Reports suggest that Trump and his advisers supported the pardon after months of lobbying from Binance’s legal and policy teams.

The news, first reported by The Wall Street Journal, could pave the way for Binance to resume operations in the United States, restoring its presence in one of the world’s largest crypto markets.

Zhao, who founded Binance in 2017, stepped down as CEO in 2023 as part of a $4 billion settlement with the U.S. government. The company admitted to anti-money laundering violations, unlicensed money transmission, and sanctions breaches. Zhao himself agreed to pay $200 million in fines as part of the deal.

Trump’s pardon marks a major turning point in U.S. crypto regulation, signaling what could be a more favorable stance toward digital assets under his leadership.