How Changpeng Zhao Regained Influence: From Prison to Pardon

How Changpeng Zhao regained power between prison and pardon

Binance co-founder Changpeng “CZ” Zhao has embarked on a journey to regain his influence after serving four months in prison for breaching US Anti-Money Laundering (AML) laws. This article delves into Zhao's remarkable comeback, including his government roles, media interactions, and financial endeavors.

Key Takeaways

Changpeng Zhao spent four months in prison for violating US AML laws.
After his release, he involved himself in various advisory roles and notably received a pardon from President Donald Trump.
Zhao continues to hold a significant stake in Binance and has expanded his efforts into YZi Labs, investing in diverse projects.
The BNB Chain is rising in the memecoin space, competing with Solana.
Zhao's interactions with the media and ongoing legal challenges reflect continuous scrutiny in the crypto space.

The Journey Post-Prison: Zhao's Strategic Moves

Following his release in September 2024, Changpeng Zhao faced significant challenges. Binance had to pay a substantial $4.3 billion in penalties, and Zhao himself faced a $50 million fine along with a lifetime ban from holding an executive position at the exchange. Nevertheless, Zhao enhanced his presence in the crypto world by taking on advisory positions with government agencies. He simultaneously countered media claims regarding his connections to influential families.

In mid-September 2025, Zhao updated his social media bio from “ex-@binance” to “@binance.” This change, paired with his pardon from President Trump on October 23, marks significant milestones in his comeback.

Politics, Changpeng Zhao, Cryptocurrency Exchange, Donald Trump, Decentralized Exchange, Features, BNB Zhao gets a pardon but continues his battle against US lawmakers. Source: Changpeng Zhao

Zhao’s Stake in the Crypto Industry

Even without a formal role at Binance, Zhao still benefits from the company’s performance, reportedly holding around 90% ownership. In February, he showcased that 98% of his personal crypto investments are in BNB. Despite Forbes estimating his wealth at $87.2 billion, Zhao insists he doesn't possess that much. Initially expressing no intention to return to Binance, his pardon has potentially altered his future involvement.

Richard Teng currently manages the centralized exchange, while Zhao has shifted his sights to YZi Labs, previously known as Binance Labs. In this new role, he focuses on investing in various sectors like cryptocurrency, artificial intelligence, and biotechnology. YZi Labs has been active in deploying funds, including a $1 billion commitment to projects on the BNB Chain.

Politics, Changpeng Zhao, Cryptocurrency Exchange, Donald Trump, Decentralized Exchange, Features, BNB Zhao-backed Aster has been a breakout platform, though there are concerns about the integrity of its data. Source: DefiLlama

Chaotic Memecoin Landscape

In 2024, Solana dominated the memecoin scene; however, BNB Chain began making notable strides in 2025. This shift kicked off on February 11, when BNB Chain emphasized its commitment to the meme ecosystem. Shortly after, Zhao shared a heartfelt post about reuniting with his dog, Broccoli, post-legal troubles, sparking speculation around a new memecoin initiative.

Politics, Changpeng Zhao, Cryptocurrency Exchange, Donald Trump, Decentralized Exchange, Features, BNB Zhao accuses the WSJ of writing a hit piece based on “inaccuracies.” Source: Changpeng Zhao

The momentum continued in October, with BNB Chain becoming a powerhouse in the memecoin sector, achieving significant network activity and even leading in fees during peak moments.

Facing Media Scrutiny

Zhao’s quest for a presidential pardon became evident in December 2024 when he expressed openness to receiving one. Tensions rose as reports emerged of Zhao's discussions with the Trump family regarding possible investments in Binance.US. Zhao firmly denied these allegations, labeling them attacks on himself and former President Trump.

As media scrutiny heightened, Zhao later confirmed that his legal team was working on a pardon application.

Politics, Changpeng Zhao, Cryptocurrency Exchange, Donald Trump, Decentralized Exchange, Features, BNB After Zhao’s pardon, betting odds for Sam Bankman-Fried’s own potential pardon are on the rise. Source: Polymarket

Global Crypto Advisory Role

Despite his felony conviction, Zhao maintained a presence as a global crypto figure. Countries such as Malaysia and Kyrgyzstan sought his guidance in updating their digital asset strategies, with Kyrgyzstan eventually launching a stablecoin on the BNB Chain.

Ongoing Challenges: FTX and Legal Entanglements

In June 2025, Zhao encountered legal issues again as FTX sued him for almost $1.8 billion. They claimed that Binance’s share buyback deal in 2021 was fraudulent. Zhao, however, dismissed these claims, asserting that the transaction was conducted offshore and not subject to US laws.

Politics, Changpeng Zhao, Cryptocurrency Exchange, Donald Trump, Decentralized Exchange, Features, BNB Hyperliquid’s Yan takes aim at centralized exchanges. Source: Jeff Yan

Zhao countered allegations that his posts instigated a bank run at FTX, maintaining they merely exposed prior mismanagement within the organization.

Rising Competitors

Aster gained rapid success after launching, quickly challenging established platforms in the derivatives space. Controversies surrounding its data integrity highlighted ongoing issues in the crypto marketplace. Zhao defended BNB Chain amidst adversity, advocating for users and reaffirming his commitment to protecting them.

With his recent pardon, Zhao's narrative shifts from that of a convicted felon to a renewed advocate for the cryptocurrency industry. The next steps for Zhao and Binance remain uncertain as they weigh their influence in the evolving US landscape versus their focus on BNB's broader ecosystem.