CaliToday (23/10/2025): In a stunning move that resets the chessboard for the global cryptocurrency industry, U.S. President Donald Trump issued a full pardon for Changpeng “CZ” Zhao, the convicted founder and former CEO of Binance. The Oct. 23 pardon not only wipes away a high-profile conviction secured under the Biden administration but also ignites fervent speculation that the industry titan could reclaim his throne at the world's largest crypto exchange.
The crypto world, which has been locked in a pitched battle with U.S. regulators, reacted with immediate elation.
Zhao, who was sentenced to four months in prison in April 2024, expressed his gratitude to the president for "upholding America’s commitment to fairness, innovation, and justice."
In a statement that aligns perfectly with the Trump administration's pro-crypto stance, Zhao declared, "Will do everything we can to help make America the Capital of Crypto and advance web3 worldwide."
His successor, current Binance CEO Richard Teng, echoed the sentiment. "This is a moment to reflect on how far the crypto industry has come," Teng said. "CZ’s belief in the power of crypto and user empowerment laid the foundation for so much of what exists today."
A Binance spokesperson amplified the message, calling the pardon "incredible news."
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| Changpeng Zhao, co-founder of Binance Holdings Ltd., during an event in Kuala Lumpur, Malaysia, on Tuesday, April 22, 2025. |
"We thank President Trump for his leadership and for his commitment to make the US the crypto capital of the world," the spokesperson told TheStreet Roundtable. "CZ’s vision not only made Binance the world’s largest crypto exchange but shaped the broader crypto movement."
From Prison to Pardon: A Reversal of Fortunes
The pardon dramatically reverses a chain of events set in motion during the Joe Biden era, which saw federal authorities launch an aggressive campaign to rein in the digital assets industry.
The regulatory pincer movement against Binance began in June 2023, when the Securities and Exchange Commission (SEC) sued the exchange and Zhao for violating securities laws. Five months later, the Department of Justice (DOJ) delivered the knockout blow, charging them with violating anti-money-laundering (AML) norms.
In a settlement that rocked the industry, Zhao pleaded guilty to failing to maintain adequate AML standards, paid a $50 million personal fine, and agreed to step down as CEO. Binance, the company, also pleaded guilty and paid one of the largest corporate fines in U.S. history: a staggering $4.3 billion.
Richard Teng, then-head of regional markets, took the helm. Zhao served his four-month sentence and, upon release, returned to Dubai. Now, just months later, his criminal record has been erased.
The 70-Day Bet: Will CZ Return to Binance?
With Zhao's legal slate wiped clean, the crypto community is consumed by one question: Will the founder return to an active leadership role at the empire he built?
On Polymarket, the world's largest crypto-based prediction market, traders aren't just talking they're putting their money where their mouth is.
A market has exploded around the question, with traders so far wagering $32,770 on the outcome. The odds are overwhelming: 69% of traders are betting "Yes" that Zhao will officially return to Binance in a leadership capacity by December 31, 2025 just 69 days from today.
The Market's Bellwether: Polymarket's Own Saga
The choice of Polymarket as the arena for this speculation is symbolic of the industry's sea change.
The New York-based platform, which allows traders to bet on real-world events like election results and Federal Reserve policy, also faced intense scrutiny from U.S. authorities during the Biden era for its election-based markets.
However, in a narrative that mirrors Zhao's own, Polymarket's fortunes have dramatically reversed since Trump returned to power. Authorities dropped their probe into the platform within months of the new administration taking office.
The platform's political alignment has become clearer. In late August, a VC fund where the president's son, Donald Jr., is a partner, invested in Polymarket. In early September, the platform won a coveted approval from the Commodity Futures Trading Commission (CFTC) to return to the U.S. market.
Capping off its stunning turnaround, Polymarket secured a $2 billion investment in early October from Intercontinental Exchange, Inc. (ICE) the parent company of the New York Stock Exchange.
Zhao’s pardon is not an isolated event. It is the most powerful signal yet that the regulatory war on crypto is over and a new, co-operative era has begun. As traders on a newly-legitimized Polymarket bet on his imminent return, the message from Washington is clear: the crypto exile is over, and its king may be coming home.