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- A presidential pardon forgives punishment but does not erase guilt or conviction.
- Civil plaintiffs can now leverage CZ’s criminal record to pursue damages.
- BNB’s short-term rally may fade as Binance faces ongoing global legal risks.
Former U.S. President Donald Trump’s decision to pardon Binance co-founder Changpeng “CZ” Zhao has stirred both celebration and confusion across the crypto world. But behind the headlines, the legal implications of this pardon may not bring the clean slate many assume.
A Pardon Is Not an Acquittal
While Trump’s pardon lifts CZ’s criminal punishment, it does not erase his conviction. Under U.S. law, only a court can overturn a verdict. A presidential pardon is a political act of forgiveness — not a declaration of innocence. By accepting it, CZ effectively acknowledges guilt, which legally cements his conviction and prevents future appeals.
That distinction matters. CZ’s conviction remains on the record, and the wrongdoing established by U.S. regulators — including evidence of weak anti–money laundering controls and sanction violations — stands as fact. Those findings now form a solid foundation for civil lawsuits from victims who claim they were harmed by Binance’s actions.
Civil Liabilities May Just Be Starting
Legal experts warn that CZ’s acceptance of a pardon could make Binance more vulnerable to civil litigation. With the criminal record now uncontested, plaintiffs no longer need to prove core elements of wrongdoing — only the harm that followed.
Victims of crypto scams, terrorism financing, and market manipulation could now have stronger grounds to sue. These claims could span from American courts to international jurisdictions, as the pardon holds no legal power outside the United States.
Market Cheers Could Turn Short-Lived
BNB’s price jumped on news of the pardon, reflecting traders’ optimism that the legal cloud had lifted. But beneath the surface, unresolved lawsuits, reputational damage, and possible global investigations could weigh heavily on Binance’s future.
Also Read: Binance Founder CZ and Economist Peter Schiff to Debate Bitcoin vs Tokenized Gold After Trump Pardon
If these risks escalate, Binance may face mounting legal costs, asset seizures, or stricter regulatory barriers — all of which could undo any short-term market gains.
🔥 NOW: $BNB jumps 5% following reports that CZ has been pardoned by Trump. pic.twitter.com/kfqlJk6DR9
— Cointelegraph (@Cointelegraph) October 23, 2025
Trump’s pardon may have offered CZ short-term relief, but it also locked in his conviction and reopened the door to extensive civil exposure. The markets may have rallied on headlines, but the long-term consequences could prove far more costly — both for CZ and for Binance’s ecosystem.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m your translator between the financial Old World and the new frontier of crypto. After a career demystifying economics and markets, I enjoy elucidating crypto – from investment risks to earth-shaking potential. Let’s explore!
