CZ Shifts Focus to Collaboration as Cryptocurrency Faces Regulatory Turning Point

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CZ Shifts Focus to Collaboration as Cryptocurrency Faces Regulatory Turning Point

Bitget-RWA2025/11/17 14:22

By:Bitget-RWA

- Binance founder CZ received a Trump pardon after a 2023 $4.3B U.S. settlement, including $2.5B forfeiture and $1.8B fine. - CZ pledged to reinvest any potential refund into the U.S. economy, emphasizing gratitude amid political backlash over "pay-to-play" claims. - Legal experts clarify presidential pardons don't void corporate penalties, as Binance remains barred from U.S. customers under Treasury oversight. - Critics accuse Trump's administration of regulatory favoritism, while CZ's team denies crypto

After receiving a presidential pardon from Donald Trump, Binance founder Changpeng "CZ" Zhao has maneuvered through complex legal and political challenges, all while the $4.3 billion settlement between Binance and U.S. authorities remains under intense examination.

Through a series of statements

, Zhao addressed the sensitive issue of whether Binance might pursue a return of the corporate fine, expressing that if such funds were recovered, he would dedicate them to investments in the U.S. as a sign of gratitude.

The $4.3 billion penalty, agreed upon in 2023, obligated Binance to forfeit $2.5 billion and pay a $1.8 billion criminal penalty. Zhao himself paid $50 million and served four months in prison

as reported

. Although Zhao resigned from his leadership position at Binance as part of the settlement, his recent pardon has sparked renewed debate about the legal and moral ramifications of the case. "I am already thankful for the pardon," he posted on social media,

highlighting the need to balance

fairness with appreciation.

CZ Shifts Focus to Collaboration as Cryptocurrency Faces Regulatory Turning Point image 0

Trump’s decision to pardon Zhao in October 2025 was met with swift criticism from Democratic lawmakers such as Senator Elizabeth Warren, who accused the administration of fostering "pay-to-play" politics. Detractors claimed that undisclosed cryptocurrency payments influenced the pardon, allegations Zhao’s attorneys strongly refuted.

Zhao’s chief legal counsel, Teresa Goody Guillen

, maintained that any

Bitcoin

transaction would be easily traceable, and there was no proof supporting the accusations. Trump, for his part,

justified his decision

by calling it a correction of what he described as a "Biden witch hunt" targeting the crypto sector.

Legal analysts have explained that while a presidential pardon removes criminal liability, it does not automatically overturn financial penalties imposed on corporations. The $4.3 billion settlement remains enforceable unless officially rescinded,

which Zhao has not sought

. His promise to invest any potential refund in the U.S. fits with broader attempts to rebuild relationships with regulators, though

experts point out

that the corporate nature of the fine makes such a reversal unlikely.

This controversy highlights the ongoing tension in the crypto industry between rapid technological advancement and regulatory oversight.

Zhao’s situation has emerged as

a central issue in discussions about compliance, with his lawyers noting that major financial institutions have faced similar fines without criminal prosecution. Binance, meanwhile, remains under the supervision of the Treasury Department,

prohibited from serving U.S. clients

but allowed to grow its international presence.

As the cryptocurrency industry adapts to shifting regulatory demands, CZ’s recent remarks suggest a deliberate move toward working with authorities. By proposing to channel any refunded penalties into the U.S. economy, he demonstrates a transition from confrontation to cooperation—a strategy that could shape how other crypto companies respond to regulatory pressures

according to industry observers

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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