Binance weighs U.S. return after reports of Trump pardon for founder Changpeng Zhao
(Washington | October 27, 2025) — Binance is assessing strategic options to expand in the United States following media reports that President Donald Trump has pardoned the exchange’s founder, Changpeng “CZ” Zhao. The Vagabond News has not independently verified the reported pardon, and no official confirmation had been issued by U.S. authorities at the time of publication.
Background
Zhao pleaded guilty in November 2023 to failing to maintain an effective anti-money-laundering program at Binance under the Bank Secrecy Act. As part of coordinated resolutions with the U.S. Department of Justice, the Treasury Department and the Commodity Futures Trading Commission, Binance agreed to pay billions of dollars in penalties, appoint an independent compliance monitor, and implement enhanced controls. Zhao stepped down as chief executive and later received a custodial sentence in 2024.
Binance’s global platform remains the world’s largest crypto exchange by trading volume, while its U.S. affiliate, Binance.US, has operated separately and at a far smaller scale amid continuing regulatory scrutiny. Civil litigation by the U.S. Securities and Exchange Commission against Binance and Zhao, filed in 2023, has remained active.
Developing Situation
Bloomberg and other outlets reported that Binance is evaluating pathways to re-enter the U.S. market more fully, including potential consolidation of Binance.US with global operations or enabling the main platform to serve American customers directly. Any such move would require regulatory approvals and strict compliance with federal and state licensing, anti-money-laundering rules, and restrictions on derivatives and stablecoin operations for U.S. users.
The reported presidential pardon, if formally issued and effective, could lift certain individual legal constraints on Zhao’s involvement with Binance. It would not, however, alter the company’s existing consent obligations, monitorship requirements, or any ongoing civil actions, including those brought by the SEC.
As of Monday, TVN could not locate an official pardon proclamation or notice from the White House or Department of Justice. Major wire services had not published confirmations on the reported pardon at the time of writing. Binance did not immediately issue an independently verifiable corporate statement on changes to its U.S. strategy.
Global Reactions
Initial reaction in crypto markets and on social media was mixed, with some industry participants welcoming the possibility of clearer engagement with U.S. regulators and others warning that questions about governance and compliance remain. Consumer protection advocates and several U.S. lawmakers have previously called for tighter oversight of large exchanges operating in or serving the United States.
Internationally, policy debates continue over the regulation of offshore crypto platforms, the listing of tokens for U.S. persons, and the supervision of stablecoins. Market observers note that any U.S. expansion by Binance would be closely watched by European, Asian, and Middle Eastern regulators given the cross-border nature of the firm’s operations.
Analysis / Outlook
A presidential pardon, if confirmed, could remove personal legal barriers for Zhao but would not resolve structural regulatory hurdles for Binance in the United States. To operate at scale, the company would likely need to address:
- SEC civil litigation and any potential settlements
- State-by-state money transmitter and virtual asset licenses
- Bank Secrecy Act compliance under Treasury’s FinCEN and the terms of its monitorship
- Restrictions on derivatives, staking, and stablecoin products for U.S. customers
Any consolidation of Binance.US into the global group would be complex, subject to regulatory review, and could face resistance if it is seen as circumventing U.S. controls. For U.S. investors, the near-term outlook hinges on formal clarity from the White House and Justice Department regarding the reported pardon, and on whether Binance outlines a detailed compliance-first roadmap acceptable to federal and state authorities.
Images:
!Changpeng Zhao speaking at Web Summit in 2018.jpg)
Image Credit: Wikimedia Commons / Web Summit (Creative Commons)
— The Vagabond News
Sources: Reuters, BBC, AP, AFP
