Trump's Crypto Pardon: Ignorance or Calculated Play?
Donald Trump claims he doesn't know Changpeng Zhao (CZ), the crypto mogul he pardoned. On the surface, it seems like a bizarre disconnect. A president pardoning someone he claims to not recognize. But let's dissect the data.
The Curious Case of CZ's Pardon
Trump said he was told Zhao was a victim of a "witch hunt" by the Biden administration. White House Press Secretary Karoline Leavitt echoed this, calling Zhao's prosecution part of a "war on cryptocurrency." This narrative—that the Biden administration is unfairly targeting crypto—is key. Is it true? Hard to say definitively with the available data. What's undeniable is that the Trump administration previously halted a fraud case against Justin Sun, after Sun invested in the Trump family's crypto firm. A pattern is emerging.
Zhao pleaded guilty to enabling money laundering in 2023. He served four months and stepped down as CEO of Binance. The pardon lifts restrictions on Zhao running financial ventures, but the impact on his standing with regulators is unclear. So, Trump pardons someone convicted of enabling money laundering, claims ignorance, and his administration simultaneously pushes a narrative of "overreach" (an assertion that needs more scrutiny). This smells less like ignorance and more like a calculated move to pander to a specific voter base.
Binance remains the most used crypto exchange in the world. The crypto market is a multi-billion dollar industry with a vocal and active community. Supporting crypto, even indirectly, translates to potential votes and donations. The question is: How much does this benefit Trump, and is it enough to justify the potential PR fallout?
The ETF Factor: A Glimpse into Crypto's Future
The timing of the pardon is also interesting, given the recent surge in crypto ETFs. In late 2025, a wave of new crypto spot ETFs launched, allowing easier investment in cryptocurrencies beyond Bitcoin and Ethereum. The Bitwise Solana Staking ETF (BSOL) had the best ETF launch of 2025 in any asset class, according to Bloomberg Intelligence's Eric Balchunas. On its third day, BSOL saw $46 million in trading volume. Canary Hedera and Litecoin ETFs, by comparison, saw only $2.3 million and $500,000, respectively.
This surge in Solana ETFs is particularly noteworthy. The SEC updated its guidance during the federal government shutdown, and issuers like Bitwise "craftily" used this to launch new funds. Balchunas predicts XRP will be the next crypto ETF to launch. This suggests a rapidly evolving regulatory landscape and increasing mainstream acceptance of crypto.
I've looked at hundreds of these regulatory filings, and the speed with which these new ETFs were approved is unusual. It points to a shift in attitude, perhaps influenced by political considerations. The Trump pardon and the ETF boom are not isolated events; they are pieces of a larger puzzle.
The Trump administration also halted a fraud case against crypto entrepreneur Justin Sun, after his investments in the Trump family's crypto firm, World Liberty Financial. In May, it was announced that a stablecoin launched by World Liberty Financial would be used by an Abu Dhabi firm for a $2bn investment in Binance.
"I Don't Know Him" – Yeah, Right
Trump's claim of ignorance doesn't hold water. Whether he knows CZ personally is irrelevant. The pardon, combined with his administration's pro-crypto rhetoric and past dealings, paints a clear picture: Trump is strategically aligning himself with the crypto industry, regardless of the ethical implications. The numbers don't lie. This isn't about ignorance; it's about calculated political maneuvering.
