Changpeng “CZ” Zhao claims rival crypto exchanges actively worked against his presidential pardon — because they feared what a pardoned CZ could mean for their market share.
Rivals Saw a Pardoned CZ as an Existential Threat
In a candid disclosure, Binance co-founder Changpeng Zhao revealed that competing cryptocurrency exchanges lobbied against his pardon application, with their primary concern being a straightforward competitive one: if CZ were pardoned, Binance could regain access to the United States market — the world’s largest crypto trading economy by volume.
CZ pleaded guilty in November 2023 to violating the Bank Secrecy Act and failing to maintain an adequate anti-money laundering program. The settlement included a historic $4.3 billion fine paid by Binance — one of the largest corporate penalties in US Department of Justice history — and a four-year bar on Binance operating in the United States. CZ personally received an approximately four-month prison sentence, which he served at a low-security federal facility in California, completing it in September 2024.
The pardon bid was reportedly submitted during the final weeks of the Biden administration and carried into discussions under the Trump administration, which has signaled a generally more crypto-friendly posture. CZ has not confirmed whether the pardon was ultimately granted or formally denied, but his comments about rival opposition suggest the process attracted significant behind-the-scenes attention from industry players.
The US Market Is the Prize
The stakes explain why competitors would mobilize. The United States accounts for an estimated 25-30% of global crypto spot trading volume, and Binance — at its peak — held roughly 60% of global spot market share. Its forced exit from the US created a vacuum that domestic and international competitors have raced to fill.
Exchanges including Coinbase, Kraken, and Bybit have all expanded their US-facing products and user bases in the period following Binance’s regulatory exit. A Binance return — particularly led by a high-profile, legally rehabilitated CZ — would directly threaten that newly captured territory. For established players, opposing a pardon was not merely political; it was a business calculation.
CZ’s remarks also shed light on the increasingly political nature of the crypto industry’s relationship with Washington. As digital asset companies grow their lobbying budgets and PAC contributions — crypto-aligned super PACs spent over $130 million influencing the 2024 US election cycle — regulatory outcomes are no longer purely legal matters. They are now competitive weapons.
A Founder Who Isn’t Going Quietly
Despite the legal shadow, CZ has maintained a high public profile since his release. He has discussed plans in artificial intelligence and blockchain education, and continues to command one of the largest followings of any figure in crypto, with over 9 million followers on X (formerly Twitter). His continued visibility keeps the question of Binance’s American future alive in industry discussions.
Binance itself, now under CEO Richard Teng, has been working to rebuild its compliance infrastructure and regulatory relationships globally. The exchange retains the largest spot trading volume worldwide, processing hundreds of billions of dollars monthly, and remains the dominant platform in markets outside the United States.
Whether a pardon materializes or not, CZ’s disclosure raises a sharper question about the regulatory process: to what degree should commercial competitors have standing to influence individual clemency decisions? The revelation will likely draw scrutiny from transparency advocates and legal scholars alike.
What This Means for Traders
For traders currently using Binance’s international platform, day-to-day operations remain unaffected by these political developments. Binance continues to serve users in most jurisdictions outside the US, with its fee structure and product suite intact.
US-based traders, however, remain in a holding pattern. Binance.US — the separate entity created to serve American customers — has had a significantly reduced product offering since mid-2023, and any meaningful re-entry into the US market would require fresh regulatory approvals regardless of CZ’s personal pardon status.
The broader lesson here is that crypto regulation is no longer just about compliance — it is about market competition played out through lobbying, legal processes, and political access. Traders should keep an eye on how Binance’s US regulatory status evolves over the coming 12-18 months, as any material change would significantly alter the competitive landscape for fees and liquidity. Cex101 monitors exchange access and fee data across major platforms to help traders stay informed as these conditions shift.
