In brief

• In 2025, President Trump pardoned Ross Ulbricht, as well as BitMEX’s and Binance’s founders, respectively.
• The clemency fulfilled part of his 2024 campaign promise to end what he called the “war on crypto.”
• Critics allege political favoritism and ties between the pardons and Trump family ventures.

Donald Trump used his pardon power to reshape the federal approach to crypto enforcement in 2025, clearing several of the most high-profile defendants the industry has had to date. The moves signaled a political shift in Washington and raised questions about how the United States would police digital assets during Trump’s second term.

“Politics drove this case,” Trump said on Truth Social while announcing his first pardon, calling the government’s past actions “ridiculous.” The statement captured the broader strategy of positioning crypto inside a national political fight and undoing years of enforcement actions that attempted to shape the industry’s boundaries.

Ulbricht pardon reverses landmark cybercrime case

Trump issued his first crypto-related pardon in January when he granted clemency to Silk Road creator Ross Ulbricht. Ulbricht had served more than ten years of a sentence that included two life terms for running the dark-web marketplace and for money-laundering and narcotics charges tied to Bitcoin transactions.

The pardon fulfilled a long-standing promise Trump made to libertarian voters and Bitcoin supporters who championed the Free Ross campaign. Months later, Ulbricht appeared at the Bitcoin 2025 conference and told attendees, “Just a few months ago, I was trapped behind those prison walls… now I’m free, and it’s because of you,” adding that Trump had “done what he said he would.”

Supporters viewed the decision as overdue relief for a figure tied to the earliest days of crypto. Critics, including former prosecutors, argued it undermined a landmark cybercrime prosecution. U.S. Representative Thomas Massie publicly praised the pardon on X.

Ross Ulbricht has been freed by President Trump with a full pardon! Thank you for keeping your word to me and others who have been advocating for Ross’ freedom, Mr. President! #freeRoss pic.twitter.com/wOJVFX1DaA

— Thomas Massie (@RepThomasMassie) January 22, 2025

BitMEX founders cleared of AML violations

In March, Trump issued pardons for BitMEX co-founders Arthur Hayes, Benjamin Delo, and Samuel Reed, as well as early employee Greg Dwyer. All had pleaded guilty in 2022 to Bank Secrecy Act violations for failing to implement required anti-money-laundering controls.

BitMEX attempted to move past the case at the time, describing the matter as “old news” after the guilty pleas. Each defendant received probation and financial penalties, but the pardons cleared the felony records. Hayes thanked Trump on X shortly after the announcement.

The decision marked a significant break from the previous administration’s push to apply strict compliance standards to cryptocurrency exchanges serving U.S. customers.

Zhao pardon ignites political corruption accusations

While Trump’s pardons of Ulbricht and the BitMEX founders drew criticism from his rivals, the sharpest reactions came from Trump’s pardon of Binance founder Changpeng Zhao in October. In November 2023, Zhao, who founded the biggest crypto exchange in the world, pleaded guilty to anti-money laundering violations. CZ served a four-month prison sentence in 2024.

The White House framed the pardon as the end of “the Biden administration’s war on crypto.” Senator Chris Murphy accused Binance of attempting to influence the administration’s crypto agenda, citing the Trump-linked stablecoin USD1 and a $2 billion Abu Dhabi deal involving the token. The allegations have not been proven, but sparked renewed scrutiny of links between the administration and Trump’s family business, World Liberty Financial.

In a 60 Minutes interview, Trump dismissed any personal connection to Zhao. “I don’t know who he is,” he said, describing Zhao as “a respected guy” who had been “the victim of a Biden witch hunt.” When asked about his sons’ business ties, Trump said, “They’re running a business, they’re not in government.”

Zhao expressed “deep gratitude” on X after the pardon, but has not returned to any leadership role at Binance.

Deeply grateful for today’s pardon and to President Trump for upholding America’s commitment to fairness, innovation, and justice.
🙏🙏🙏🙏

Will do everything we can to help make America the Capital of Crypto and advance web3 worldwide.

(Still in flight, more posts to come.)…

— CZ 🔶 BNB (@cz_binance) October 23, 2025

Political fallout and policy shift

Supporters said the president kept his promise to loosen federal pressure on the industry. Critics warned that the decisions blurred the line between policy and political loyalty.

“First, Changpeng Zhao pleaded guilty to a criminal money laundering charge. Then he boosted one of Donald Trump’s crypto ventures and lobbied for a pardon,” Senator Elizabeth Warren said in a statement. “Today, Donald Trump did his part and pardoned him. If Congress does not stop this kind of corruption in pending market structure legislation, it owns this lawlessness.”

Together, the pardons marked a change in the federal posture toward cryptocurrency in 2025 and set the stage for new conflicts over how aggressively the government would regulate crypto heading into 2026.

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