At the World Economic Forum in Davos in January 2026, Binance founder Changpeng “CZ” Zhao addressed widespread speculation surrounding his unexpected presidential pardon, offering rare clarity on one of crypto’s most controversial political moments.
Despite media reports suggesting backroom dealmaking or close ties to the Trump administration, CZ denied any personal connection to the former president. “The closest that I got to him was today when he was doing the Board of Peace session. I was in the audience, about 30 to 40 feet away from him,” he told CNBC’s Andrew Ross Sorkin.
Background: Why the Pardon Raised Eyebrows
The controversy stems from events dating back to 2024, when CZ was sentenced to four months in prison after pleading guilty to violating the U.S. Bank Secrecy Act for failing to implement sufficient anti-money laundering safeguards at Binance. He completed his sentence in September 2024.
In October 2025, President Donald Trump issued a full pardon, calling CZ a “victim” of the previous administration’s “war on cryptocurrency.” The move sparked backlash, especially after it emerged that UAE-based investment firm MGX had invested $2 billion into Binance earlier in 2025 using a stablecoin developed by World Liberty Financial, a crypto venture linked to the Trump family. Critics alleged the deal represented a political favor exchange.
CZ’s Response: “No Direct Contact”
CZ strongly rejected the idea of any quid pro quo arrangement. He emphasized that he has no business relationship with President Trump and said the use of Trump-linked stablecoins was purely an investor decision, not something he orchestrated.
He also clarified that while he met Eric Trump once at a Bitcoin conference in Abu Dhabi, the interaction was brief, public, and unrelated to Binance or his legal case.
Regarding the pardon process itself, CZ described it as a “black box.” He claimed he did not expect to receive clemency and only hired lobbying firm Checkmate Government Relations run by a friend of Donald Trump Jr. months after completing his sentence, once the political environment shifted.
Life After the Pardon
Although CZ stepped down as Binance CEO following his conviction, he remains the company’s majority owner. He said the pardon lifted the psychological burden of his felony status, allowing him to feel like a “real free man.”
Currently, CZ is focusing on Giggle Academy, his nonprofit education initiative, while predicting a major Bitcoin supercycle in late 2026. As crypto continues to intersect with global politics, his case highlights the growing influence and scrutiny surrounding the industry’s most powerful figures.
