Updated on 24th October, 2025
This article was first published on Deythere.
President Donald Trump has granted a presidential pardon to Changpeng Zhao, aka CZ, founder of Binance and a crypto OG. The news caused immediate market moves as $BNB spiked and reignited long-standing questions about timing, insider knowledge and crypto-politics.
Trader Garrett Jin was in the spotlight as he had bet on the CZ pardon and made massive short trades before Trump’s tariff announcement.
The Pardon Uncovered: Legal History and Trump’s Decision
Zhao had pleaded guilty in late 2023; to a single US federal charge of failing to maintain effective anti-money laundering controls; he served 4 months in prison and paid $50 million fine; while Binance settled a $4.3 billion penalty. Having stepped down as CEO in November 2023, Zhao still held an ownership stake in Binance.
In his social media announcement of the pardon, Zhao said:
“Deeply grateful for today’s pardon … Will do everything we can to make America the Capital of Crypto and advance web3 worldwide.”
The White House framed this CZ pardon as a step to restore fairness and innovation in crypto, setting the pardon against the previous administration’s war on cryptocurrency.
Cardano Founder Charles Hoskinson had, in turn, congratulated CZ on the achievement, noting that the President had just corrected a great injustice from the previous administration.
The clemency, granted via Article II powers, wipes out Zhao’s criminal conviction and associated penalties. This CZ pardon is a big one, which will not help bolster the narrative around crypto enforcement and accountability.
Market Reaction: $BNB and Crypto Price Moves
News of CZ pardon caused immediate market moves. $BNB jumped 5.38% shortly after the announcement to trading around $1,132. Still BNB is 17% below its all-time high of $1,370.
Crypto markets overall are more optimistic that US is taking a more favorable regulatory stance on digital assets. Some see this as a signal that political influence in crypto policy could favor incumbents in the space.
Others are concerned about conflicts of interest and the optics of politically timed clemency. Whatever the case, CZ pardon has already changed risk perception and started deeper conversations around crypto-politics.
The Man Behind the Curtain: Garrett Jin
Central to the intrigue is Garrett Jin, a trader previously credited with executing a large short on Bitcoin shortly before Trump’s dramatic tariff announcement. Reports suggest those trades earned him between $160 million and $200 million.
Jin was accused in crypto circles of having a knack for picking the perfect moment to time big events. When news broke of Trump’s pardon, on chain sleuths on the blockchain started digging around a Polymarket bet that asked the question “Will Trump pardon CZ in 2025?”, which just so happened to be connected to a wallet linked to the same trader who’d placed a massive short just a few months before.
That bet, it was reported, had earned a tidy sum of $56,522 for the trader.
Eye, a seasoned blockchain investigator, flagged some suspicious activity around the wallet connections and trade timing, prompting speculations in the crypto space about insider knowledge.
Jin and his public accounts have been adamant that there’s no connection to Trump or any kind of insider trading going on, but rather the short trade was a straight-up market play taken on behalf of clients.
However, many in the crypto space are looking at the suspicious timing and connections and calling foul.
The Intersection of Politics and Crypto
The CZ pardon is the latest chapter in a big discussion about how politics interacts with the crypto industry. Trump’s pardon of other crypto execs, such as Bitmex founders, is a clear precedent, and now there’s talk about whether he’s just following a crypto-friendly agenda or it is intertwined with politics.
Critics are raising some red flags saying that granting pardons to powerful industry figures like CZ is a recipe for favoritism, regulatory rollbacks, and blurring the lines between government and market actors.
Conclusion
The CZ pardon by President Donald Trump has reverberated through the crypto policy space. While it was a welcome relief for CZ himself, it’s also raised a whole lot of eyebrows around whether there was some kind of insider knowledge or special dealing going on.
Trader Garrett Jin’s earlier trades, both the massive Bitcoin short and the bet on the pardon, are a big part of this conversation.
As things stand, the industry is stuck in a bit of a holding pattern, waiting to see how the politics and laws all shake out.
Glossary
Polymarket bet: A contract on a prediction market platform where users wager on outcomes.
On-chain sleuthing: Analysis of wallet addresses, transaction flows, and blockchain metadata to detect patterns or connections.
Clemency: Presidential power to pardon or commute federal criminal sentences.
Market optics: The public perception and sentiment influences around events; separate from direct legal or financial outcomes.
Frequently Asked Questions About President Trump’s CZ Pardon
Why did Trump pardon CZ?
The White House said the pardon was about fairness and crypto innovation; reversing what it called prior prosecutorial overreach.
Did the CZ pardon affect crypto markets?
Yes. $BNB reportedly went up 5.38 % after the announcement.
Who is Garrett Jin and what is his role in this story?
Jin is a trader who allegedly made large short trades on Bitcoin just before tariff news, then bet on CZ’s pardon. He denies insider ties but is at the center of speculation.
Does a pardon wipe away all legal consequences?
The pardon forgives the federal criminal conviction and removes penalties; but reputational and civil implications may remain.
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