The crypto world lit up this week after former Binance CEO Changpeng Zhao, known as CZ, received a full presidential pardon from Donald Trump.
For years, CZ was the face of global crypto trading. Now, after serving time and being cleared by the White House, he’s back in the spotlight — and the markets are reacting fast.
Why CZ was convicted
Back in late 2023, CZ pleaded guilty to one federal charge: failing to maintain an effective anti-money-laundering system at Binance.
U.S. prosecutors argued that Binance processed billions in illegal transactions, including funds from sanctioned countries.
CZ took responsibility as CEO, accepted a personal fine, and agreed to step down from leadership.
It wasn’t a fraud case or a rug pull — but it was a massive compliance failure that cost Binance roughly $4.3 billion in penalties.
When he went to jail
In April 2024, CZ was sentenced to four months in federal prison.
He served his time quietly, avoiding interviews or media appearances. By late 2024, he had completed his sentence and returned home.
Since then, CZ kept a low profile. He shared only a few posts about fitness, meditation, and “building for the long term.”
When pardon talks began
Rumors of a potential pardon started in 2024 and gained traction after Trump’s pro-crypto campaign promises.
Advisers close to both camps hinted that CZ’s case symbolized the previous administration’s “war on crypto.”
Still, few expected it to happen this soon.
Then, on October 23 2025, Trump officially signed CZ’s pardon.
Why Trump pardoned CZ
The White House called it a gesture toward “ending anti-crypto bias” in Washington.
Officials said CZ had paid his dues, served his sentence, and contributed to advancing digital finance.
But not everyone is buying that explanation.
Some analysts believe the decision may have deeper political and financial roots.
Especially considering one particular connection that looks hard to ignore — WLFI.
Why does this cycle feel so weird?
The WLFI connection
Earlier this year, Binance made headlines by investing $2 billion into WLFI’s USD1 stablecoin, the digital dollar created by Trump’s crypto venture World Liberty Financial.
That deal alone is estimated to yield $60 million – $80 million per year in revenue for the WLFI team.
It was one of the largest stablecoin-backed partnerships in 2025.
Now, just months later, the same president whose project received a $2 billion boost has pardoned the man behind Binance.
Coincidence? Maybe.
But markets don’t think so.
Market reaction
Within hours of the news, WLFI’s token spiked around 10 percent.
Traders interpreted it as a political green light — a signal that the White House is standing firmly behind crypto.
WLFI’s stablecoin, USD1, also saw a surge in activity, with on-chain volumes doubling overnight.
Meanwhile, Binance’s native token BNB gained around 5 percent in sympathy.
Even meme coins tied to “Trump” or “CZ” tickers were briefly up as traders rushed in.
Related: Check out the story about the CZ insprired “four” meme.
The speculation
No one has concrete proof that the WLFI investment directly influenced the pardon.
But the timeline raises eyebrows:
- Early 2025 – Binance invests $2 billion in WLFI’s USD1.
- Mid-2025 – WLFI becomes a dominant stablecoin on-chain.
- October 2025 – CZ receives a presidential pardon.
When a crypto project co-founded by the sitting president benefits from the world’s largest exchange, and that exchange’s founder suddenly gets cleared — it’s hard not to connect the dots.
Political and ethical questions
Critics argue this sets a dangerous precedent.
Does political alignment now buy legal forgiveness?
On the flip side, pro-crypto voices hail the pardon as proof that Trump is serious about supporting digital innovation.
Either way, the lines between politics, finance, and blockchain have never looked blurrier.
What it means for Binance
With CZ’s record wiped clean, Binance could push harder for U.S. re-entry.
Expect new compliance hires, lobbying efforts, and possibly a fresh partnership with U.S. banks.
CZ, now a free man, may reappear in the public eye as an advisor or investor in new ventures — though he’s unlikely to return as Binance CEO.
What it means for WLFI
WLFI, meanwhile, continues to dominate headlines.
Between the USD1 stablecoin success, the $2 billion Binance partnership, and now a pardon that indirectly benefits them, WLFI’s political-financial influence is expanding fast.
Traders are treating WLFI not just as a crypto token, but as a symbol of the new era — where politics and blockchain openly overlap.
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Final thoughts
The CZ pardon isn’t just about forgiveness — it’s about power.
It shows how crypto has moved from the fringes to the front row of global politics.
Even for long-time believers in decentralization, this story feels like a turning point.
Because when a $2 billion deal meets a presidential pen, the markets listen — and they move.
If you enjoyed this blog, be sure to check out our guide on Looping Strategies to utilize while farming.
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