In the span of ten months during 2025, President Donald Trump extended pardons to three prominent figures entrenched in the cryptocurrency ecosystem. These executive clemencies attracted widespread attention and controversy, fueled by assertions that personal financial connections might have influenced the decision-making process behind the pardons.
Ross Ulbricht: From Incarceration to Pardon
On January 21, 2025, Trump issued a full and unconditional pardon to Ross Ulbricht, the founder of the Silk Road, an infamous online marketplace. Ulbricht’s release came after serving over a decade — since 2013 — under a double life sentence. Convicted for running an online platform that prosecutors claimed facilitated nearly $1 billion in illicit transactions predominantly involving various narcotics such as heroin, cocaine, and LSD, his operations largely accepted Bitcoin (BTC) as payment.
Upon announcing the pardon via his social media platform, Trump highlighted a personal phone call with Ulbricht’s mother and credited support from libertarian members of his base as influencing the decision. Trump also characterized those responsible for prosecuting Ulbricht as having "weaponized the government," implying political motivations behind the conviction.
Following his release, Ulbricht publicly commended Trump, referring to him as "a man of his word." Blockchain tracking later revealed that Ulbricht's associated cryptocurrency wallets retained roughly 430 BTC, valued at in excess of $45 million during that period.
BitMEX Executives Granted Clemency
Subsequently, on March 27, 2025, Trump pardoned Arthur Hayes, Benjamin Delo, Samuel Reed, and Gregory Dwyer, the co-founders and a former executive of BitMEX. These individuals had previously pleaded guilty to charges related to violating the Bank Secrecy Act, specifically for failure to implement anti-money laundering (AML) controls and know-your-customer (KYC) procedures during BitMEX’s operation.
Federal prosecutors characterized BitMEX’s platform as a "money laundering platform," a serious charge reflecting regulatory concerns about cryptocurrency exchanges. Each co-founder was subject to a $10 million civil fine, while BitMEX itself disbursed $100 million in penalties.
After the pardons were announced, Hayes expressed gratitude publicly by tweeting "Thank you POTUS," while Delo stated the clemency validated their persistent claims that the government’s case was excessively harsh. In follow-up comments, Hayes continued to express bullish expectations for Bitcoin’s future, including forecasts of the cryptocurrency reaching a $1 million valuation, attributing this potential to broader global monetary expansion.
Controversy Surrounding Changpeng Zhao’s Pardon
On October 23, 2025, the president granted clemency to Binance’s founder and CEO Changpeng "CZ" Zhao, fueling the most intense public and political backlash compared to the earlier crypto pardons.
Zhao had previously pleaded guilty in November 2023 to charges related to facilitating money laundering during his tenure at Binance. He incurred a substantial $50 million fine and endured a four-month incarceration. Additionally, Binance reached a $4.3 billion settlement with U.S. regulators concerning multiple violations.
President Trump stated he was not personally acquainted with Zhao but cited numerous unspecified sources who claimed Zhao was unfairly persecuted by the Biden administration, framing the pardon as corrective.
The pardon triggered immediate criticism from lawmakers expressing ethical concerns about the implications of the decision.
Allegations of Financial Entanglements and Influence
Notably, Congresswoman Maxine Waters (D-CA) denounced Zhao’s pardon as a "blatant display of corruption," highlighting alleged ties between Trump’s personal financial interests in digital assets and the exercise of clemency.
Waters asserted that Zhao engaged in extensive lobbying aimed at President Trump and his family while channeling substantial funds into World Liberty Financial (WLFI), a private crypto company partially owned by the Trump family. Reports indicate that Binance transferred approximately $2 billion into WLFI's stablecoin, which yielded an estimated annual income of $80 to $87 million.
Given a 60% stake in WLFI, the Trump family potentially collected between $48 million and $52 million annually as passive income. Further disclosures revealed that Binance spent around $800,000 on lobbying activities linked to seeking clemency and paid an additional $450,000 to a firm led by Charles McDowell, an associate of Donald Trump Jr., specifically to pursue executive relief.
Zhao countered these allegations, denying any quid pro quo arrangement and branding the claimed financial ties to World Liberty Financial as "categorically false."
Senator Elizabeth Warren (D-Mass.) also criticized the pardon, emphasizing that Zhao had admitted guilt to money laundering, actively promoted a Trump-affiliated crypto venture, and nonetheless received a presidential pardon.
Conclusion
The 2025 series of cryptocurrency-related pardons by President Trump spotlighted the intersection of politics, legal accountability, and the rapidly evolving digital assets industry. Each pardon reflected distinct legal backgrounds and penalties, yet all were shadowed by allegations of undue influence, lobbying, and potential financial motivations entwined with executive clemency. The developments underscore ongoing political scrutiny faced by cryptocurrency entrepreneurs in the regulatory landscape and raise questions about the transparency and ethics of presidential pardons.