Original Title: "How did Zhao Changpeng of Binance, who left Shanghai, get pardoned by Trump? - A Ten-year Memory and Industry Puzzle from an Old Coin Circle Person"

Original Author: JayZhou, 3 O'Clock Blockchain

From the grassroots era of Beijing's Zhongguancun in 2014 to Trump's pardon in 2025, Zhao Changpeng's ten-year journey is like a mirror, reflecting the wild growth of the coin circle, regulatory storms, and power struggles. Those scattered details in time have become the keys to unraveling the "pardon puzzle."

First Encounter: The Fireworks and Coin Circle "Grassroots Era" of Zhongguancun

1 The "Three-person Team" in the Beijing Yinquan Hui Office

In 2010, I worked in Boss Chen Tianqiao's Shanda Online as a senior product operation on the open platform. At that time, Shanda Group invested in several hundred companies, including Moji Weather co-founded by Zhao Dong at the time and Douban Network with Xu Mingxing as CTO. My job responsibility at the time was to integrate all the Shanda Group invested products into our Shanda Open Platform. It was at that time that I did not yet know about Bitcoin. I met Xu Mingxing and was responsible for connecting their Douban Network to the Shanda Open Platform. On November 22, 2013, I bought Bitcoin for the first time and posted it on WeChat Moments, receiving hundreds of likes and comments.

In 2013, CZ met a venture capitalist through Texas Hold'em, thus opening the door to his world of digital cryptocurrency. As a relatively early cryptocurrency believer, when he saw that virtual currency could enable money to move at high speed, his keen sense seemed to envision the future. After that, CZ joined the digital wallet provider blockchain.info and embarked on a great voyage of virtual currency.

In Beijing in 2014, blockchain was still a term that needed half an hour of explanation. At the Zhongguancun Yinquan Hui office in Beijing, the doorplate read "OKCoin," which was the product of Beijing LeCoolDa Network Technology Co., Ltd. at the time and later evolved into OKEX by a post-90s in 2017, now OKX.

That day, Xu Mingxing treated us, saying it was a "welcome dinner for the technical team." Pushing open the glass door, more than ten workstations were crowded in a 20-square-meter office, with keyboards clacking one after another. Xu Mingxing in a checkered shirt welcomed us, pointing to a man wearing black-framed glasses and a tactical jacket in the corner, saying, "This is CZ, our new CTO, back from Canada, knowledgeable about blockchain." He then pointed to the lady next to him in a red dress, saying, "He Yi, in charge of marketing, used to be a host on a travel satellite TV." CZ, not very talkative, holding a thermos cup, suddenly opened up about the matching logic of the Bitcoin trading system.

At that time, CZ had just resigned from Blockchain.info, giving up a high salary in Silicon Valley to take a monthly salary of tens of thousands in Beijing; He Yi had just resigned from CCTV, giving up a stable position to dive into the overlooked "virtual currency" field; and Xu Mingxing had even risked his entire net worth in Bitcoin trading, with his blanket still on the office's folding bed.

He said at that time, OKCoin's system throughput was insufficient, and he was thinking about optimizing the code, saying, "Once we solve this, the user base can triple." He Yi, on the other hand, joked that they should create an educational short film on "What is Bitcoin," saying, "So that even the elderly can understand." That day's lunch was donkey meat buns downstairs, and Xu Mingxing insisted on paying, saying, "Now that the company just started making a profit, we need to be thrifty." Only later did I realize that the 2014 crypto circle was "grassroots and pure." Everyone gathered together simply because they "believed this thing had a future."

The "Jianghu" Formed in Two Small Salons

From 2013 to 2016, crypto events were mostly "ten-person" small salons held either in the free meeting rooms of an incubator or in a corner of a garage cafe. I followed Xu Mingxing a few times, and almost every time I could see CZ, He Yi, Li Lin, Du Jun, and Baor Er Ye, who later became "big shots."

What left the deepest impression was a salon in the winter of 2014, held on Zhongguancun's Entrepreneur Street, with the theme of "Bitcoin's Development Trends." Li Lin brought Firecoin's technical backbone, holding a sample mining machine chip in his hand; handing out business cards everywhere with a backpack on his back; He Yi was the most active, even joking, "Although there are few people now, when the crypto circle gets hot in the future, we'll hold a conference for thousands." At that time, CZ had not yet shown his "tycoon" demeanor and looked more like a technology enthusiast than an engineer.

After one salon ended, he talked to me about his views on the industry, saying, "The biggest issue now is compliance and technology; once these two are resolved, the blockchain can truly take off." No one imagined that ten years later, it was the word "compliance" that led him through imprisonment, only to regain his freedom through a political game. In the WeChat chat records of those years, his occasional shares were still there: "The Chinese version of the Ethereum Whitepaper transferred in 2015," "Be careful of exchange security vulnerabilities in 2016," and at the beginning of 2017, he said, "Preparing to do something myself, we can talk in Shanghai when there's a chance." Looking back now, I realize that the seeds of fate had already been planted.

Rise: Shanghai SOHO, "Binance Speed," and the Eve of International Expansion

1 My Referral of a Candidate to the Start-Up at SOHO Rejuvenation Plaza

2017 was the "breakout year" for the crypto world and also a "turning point" in #CZ's life. That year, he left OKCoin, founded #Binance, and set up the initial team at Shanghai SOHO Rejuvenation Plaza, before hastily expanding internationally post the "94" storm. I was fortunate to witness this "lightning-fast rise and migration," and the details in the office held the key to Binance's later fate.

On August 2, with the BNB price at 0.8 yuan/each, I scheduled a meeting with CZ for the first time at noon, wanting to visit his newly established Binance office. The address was at Shanghai SOHO Rejuvenation Plaza, upstairs from Little Red Book. The office was small, with dozens of people squeezed into workstations. CZ's desk was in the corner, with several boxes of bottled water piled next to it. At that time, He Yi had not yet joined Binance. He told me, "Recently, I have been busy with Binance's globalization, and many people have come to cooperate through events." At that time, Binance had just launched, and offline events became their main way to "quickly connect resources." He also asked if I was interested in joining Binance. As a crypto friend who had been in the industry since 2013, I was certainly very interested. However, at that time, our P2P platform had been running for three years. I told Chang Peng that once I finished my busy period, I would help you properly. But if you have any questions during this time, I can help you."

Since I started blogging in college, I have met many internet company leaders, and many people would like to seek employment at internet companies through me. When I graduated from college, I joined the Alibaba Group and recommended more than 100 people internally. In the early days of the crypto world, I also helped recommend many people into various companies. Therefore, the resume database I continuously built had a scale of around a million people. Later, I worked as CEO Assistant at Kanjun Net & BOSS Direct Recruitment, responsible for some product operations, marketing, strategy, and other business areas of the company. I also continuously delved into the field of internet human resources recruitment. On August 24, 2017, I recommended my friend's resume to CZ. At that time, Binance only had three product managers.

I recommended Binance to a friend, and he thought the company's business was good but very risky. I also encouraged the candidate to be more proactive because reliable startups are scarce. Initially, CZ invited me over for dinner, but I was swamped with work, so we agreed that I would visit after my busy period. Therefore, I first recommended other friends to help out.

In 2017, I left a strong impression on many people as a reliable "part-time headhunter," considering I had referred a large number of talents to major internet companies. On that day, Changpeng talked to me for two hours, filled with excitement. He said Binance aimed to become the "world's fastest exchange," had already connected with over 10 cryptocurrencies, and planned to launch with fees half as low as those of Huobi and OKEx. "Every day, people come to discuss partnerships, and the office couch is constantly occupied," he said, pointing to a pile of sleeping bags in the corner. I noticed the plethora of compliance-related notes on his desk: "How to deal with regulatory requirements in different countries?" "How to establish an anti-money laundering system?" Looking back, these issues seemed overshadowed by the "expansion speed" at the time but turned out to be future risks. As we were parting ways, he said, "Shanghai is a land of opportunity with abundant talent, especially needing talents like you. You are welcome to recommend more talents to join Binance, and we would love for you to join Binance soon as we are specifically lacking operational talents like you!" Little did I know that after our P2P company's third-anniversary event, the unexpected happened!

2 The Wanxiang Conference and the Overseas Expansion Decision Amid the 94 Storm

On September 4, 2017, the People's Bank of China and six other ministries issued the "Announcement on Preventing the Risks of Fundraising Through Coin Offerings," completely halting ICOs and cryptocurrency trading, plunging the crypto market into panic. My social media feed was flooded with messages about "exchanges closing down" and "coin prices crashing." I quickly messaged CZ on WeChat, and he replied, "Don't panic, wait for my message, see you at the Wanxiang Conference in October." The Shanghai Wanxiang Blockchain Conference after September 4, 2017, became the industry's "safe haven." Holding a media pass, I entered the venue and bumped into CZ and He Yi at the entrance. He was wearing a black jacket, looking more serious than before, and mentioned, "We are looking for an overseas office location; Japan has friendlier policies." During that day's conference, Ethereum's founder, Vitalik Buterin, made an appearance and spoke about the "importance of blockchain's compliant development." I asked some exchange founders, and they were preparing to "remove domestic users and focus on overseas markets," while CZ revealed, "The Binance team is flying to Japan next week to set up a temporary office in Tokyo as a transition." He Yi added, "A few people will stay back to wrap things up at the Shanghai office; some equipment will have to be sold at a low price, which is quite regrettable."

In October, CZ and He Yi swiftly arrived in Tokyo, Japan, standing in front of the new office window in Tokyo, with the caption "Starting Over." Looking at that photo, I remembered the folding bed in the SOHO Rejuvenation Plaza, suddenly having a premonition: this team that left Shanghai would disrupt the global crypto market in the future, but they might also encounter even bigger storms.

No one expected that this "going global" was just the beginning of CZ's global migration. From Japan to Malta, to Dubai, Binance changed headquarters one after another, but never managed to completely solve the "compliance" sword hanging over their heads.

Downfall: $4.3 Billion Fine and 4 Months of Imprisonment

1 Regulatory Storm: 18 Months from Lawsuit to Guilty Plea

CZ's legal troubles began in March 2023. At that time, the U.S. Commodity Futures Trading Commission (CFTC) sued Binance and CZ, accusing them of "operating an unregistered exchange, violating trading rules." Then in June, the U.S. Securities and Exchange Commission (SEC) brought 13 charges, including "providing false trade supervision statements, selling unregistered securities," and more.

When the news came out, I was in Hong Kong attending an event, and the people in the industry were discussing whether "Binance would go bankrupt." A lawyer friend familiar with U.S. regulations told me, "This time it's serious; the U.S. Department of Justice has long been eyeing Binance's anti-money laundering issues." Sure enough, in November 2023, CZ admitted in a Seattle court to "failing to maintain an effective anti-money laundering program" and resigned as Binance CEO; Binance admitted to "engaging in money laundering, unlicensed money transmission, and sanctions violations," agreeing to pay a massive $43.2 billion fine—of which $25.1 billion was forfeited, and $18.1 billion was a criminal fine.

The $4.3 billion fine set a record in the crypto industry. I remembered Xu Mingxing's words in the office in Wudaokou in 2014, "Spend sparingly," and looking at the fine amount now, I couldn't help but feel the industry's changes. An old OG in a WeChat group said, "Back then, Binance relied on low fees to capture the market, and the anti-money laundering system couldn't keep up, so now it's paying for the expansion speed." After admitting guilt, CZ wrote an apology letter, saying, "I should have focused on compliance from the beginning and am willing to take full responsibility." But it was too late for regrets. On April 30, 2024, a U.S. federal court in Seattle sentenced him to 4 months in prison, although much lower than the prosecutor's request for 3 years, it still became the "only founder in U.S. history of the crypto industry to be imprisoned solely on charges of the Bank Secrecy Act."

2 Prison Time and Dubai's "Timely Help"

From April to September 2024, CZ was imprisoned at Longpoke Prison in California. During that time, the discussion in the crypto community shifted from "Will he be heavily sentenced?" to "Can Binance survive?" Just when everyone thought Binance was going to decline, in March 2025, shocking news rocked the industry: UAE artificial intelligence investment company MGX injected $2 billion into Binance, marking not only Binance's first institutional investment but also the largest single investment in crypto history.

MGX is no ordinary investment institution; it is backed by the Abu Dhabi sovereign fund and is a core platform for the UAE's AI and blockchain initiatives. This investment was made in stablecoins, with MGX acquiring a minority stake in Binance. Market speculations placed Binance's valuation between $20 billion and $40 billion—although significantly lower than the rumored $200 billion in 2021, it was enough to help Binance through tough times. A friend close to Binance revealed that this investment was personally negotiated by CZ after his release. On September 27, 2024, CZ was released ahead of schedule due to his release date falling on a weekend and, upon leaving prison, his first stop was Dubai, where he met with MGX's leadership. Dubai's willingness to provide "timely help" stemmed from its belief in the potential of blockchain development and its desire to establish a "global crypto hub." Additionally, Binance's user base and technological capabilities were still strong, and the $2 billion investment could help Dubai swiftly seize a dominant position in the industry.

After his release, everyone understood that as long as his U.S. "criminal record" remained, CZ could not truly return, and Binance would find it challenging to re-enter the U.S. market. At this point, another key figure—Trump—entered the crypto sphere's spotlight.

Reversal: Trump's Pardon and the Hidden Interest Game

1 Behind the Pardon: Trump's "Crypto Card"

On October 23, 2025, when Trump announced the "pardon of CZ" in front of the media, I was at the main forum of the Wanxiang Blockchain Conference in Shanghai. The OGs around me were instantly in an uproar—some pulled out their phones to refresh the news, while others exclaimed, "This plot is more thrilling than a movie." The seemingly sudden pardon was actually a meticulously crafted game intertwining political calculations, commercial interests, and industry dynamics.

Trump Pardons CZ, First and foremost to bolster his image as a "crypto-friendly" figure. Since taking office, he has been reversing the Biden administration's enforcement actions against the crypto industry: pardoning the "Silk Road" founder Ulbricht, pardoning several founders of BitMEX, and now it's CZ's turn, continuing his policy line.

White House spokesperson Levitt was blunt in response, stating that CZ is a victim of the Biden administration's "war on cryptocurrency," and Trump's pardon is an "exercise of constitutional authority." This statement can be seen by the discerning as a play of the U.S. two-party system in the crypto industry. Trump aims to garner support from young voters and tech capital by supporting the crypto industry, and pardoning industry figures like CZ is undoubtedly the most direct statement. But more importantly, there are commercial interests at play. According to The Wall Street Journal, Binance had been in contact with Trump allies as early as around the 2024 U.S. election, forming a dedicated task force to explore the possibilities of "re-entering the U.S. market" and "obtaining a pardon for CZ."

The breakthrough came with Trump's family-owned cryptocurrency company, the "World Liberty Financial Institution (WLFI)." Binance not only assisted WLFI in launching a stablecoin, a business that brings in millions of dollars in revenue for the Trump family every year, but also explored funding WLFI in exchange for a pardon for CZ. This operation is not unprecedented: Sun Yuchen, the founder of TRON, invested $30 million in WLFI, after which the SEC suspended its fraud lawsuit against him.

Although CZ denies "engaging in transactions for a pardon," the market generally believes that this logic of "business cooperation in exchange for political endorsement" has long been established. Trump himself admitted that the pardon was made "at the request of many influential individuals," but emphasized that he "had never met CZ." This kind of statement is more like a "political rhetoric," distancing from direct involvement while achieving the goal of winning over the crypto industry.

2 Will Barron Take Over Binance US?

Behind the rumor of the pardon, another more sensational rumor began to ferment: Trump's son Barron Trump may take over Binance US. While neither Binance nor the Trump family has responded directly, this rumor is not groundless.

Insiders revealed that Binance has always wanted to re-enter the U.S. market, but the 2023 plea agreement tarnished its reputation in the U.S., making it difficult to find partners. Collaborating with the Trump family is undoubtedly the "best calling card." If Barron were to join Binance US, it could not only leverage the Trump family's influence to improve Binance's public image but also take advantage of the Trump administration's policy bias to quickly obtain regulatory licenses.

For the Trump family, this is also a lucrative deal. As the cryptocurrency industry rises globally, investing in top-tier platforms like Binance US allows them to directly participate in market dividend distribution. Some analysis suggests that if Binance US can relaunch, its valuation could reach tens of billions of dollars. Even if the Trump family only holds a small amount of equity, they can still receive substantial returns.

What's even more noteworthy is Barron Trump's own strong interest in technology and cryptocurrency. In recent years, he has repeatedly publicly stated his optimism towards blockchain technology. If he does indeed take over Binance US, it would not only help him accumulate business experience but also add another crucial piece to the Trump family's "political business landscape." Although the rumors have not been confirmed, from an industry logic perspective, the likelihood of this "powerful alliance" is significant.

3 Industry Shockwaves: Chain Reactions After Pardon

The news of CZ's pardon instantly triggered chain reactions in the cryptocurrency market. BNB's price skyrocketed that day, reaching a new all-time high, and Binance's platform trading volume also surged by 30%. More importantly, this may allow Binance to prematurely end its three-year external monitoring—as the 2023 plea agreement required Binance to undergo independent compliance monitoring, and the pardon might revoke this requirement.

For the global cryptocurrency industry, this pardon sent a clear signal: the US is easing its regulation of the cryptocurrency industry. A friend from a compliance agency told me, "There will definitely be more cryptocurrency companies applying to enter the US market next. The Trump administration wants to transform the US into the 'cryptocurrency capital,' which is good for the industry but may also bring new risks."

However, skepticism also exists. Democrats have already demanded that the Trump administration provide detailed explanations of its interactions with Binance, stating that this situation of "interwoven business relations and political pardons" raises serious ethical concerns. Some have even bluntly stated that this is a "blatant abuse of power," which could undermine the US's judicial fairness. At a gathering of crypto OGs, opinions are more rational. Some say, "The pardon solved CZ's personal problem, but Binance still has a long road to compliance." Others lament, "Binance, which fled from Shanghai, now has to rely on US political power for a turnaround. The world is full of surprises."

Impact: The Legend of Shanghai and the Industry's Future

1 Shanghai: The 'Original Intent' Land of Blockchain

On October 23, 2025, the Shanghai Wanxiang Blockchain Conference was still bustling with activity. Dr. Xiao Feng was delivering an impassioned speech on the main stage. Young entrepreneurs were sharing application cases of "AI + Blockchain"; in the exhibition area, newly established projects were busy handing out pamphlets. During tea breaks, I met some young newcomers to the industry. Seeing me in a shirt with BINANCE printed on it, they asked if I was a Binance staff member. I said no, but my relationship with them is intricate. They heard I know CZ and surrounded me, asking, "Was his office in Shanghai really that rudimentary back then?"

Looking at these fresh faces, I suddenly realized that the crypto world is no longer the small circle of "a dozen people salon" it used to be. However, those old stories, old places, still circulate in the community, especially the Shanghai SOHO Rejuvenation Plaza from July to October 2017, the place where the Binance dream began. Today's Shanghai has become the most open city in mainland China for blockchain policies. The Science and Technology Industrial Park has introduced a series of policies such as "enterprise subsidies" and "talent settlement," and by 2024, Shanghai's blockchain-related industry is thriving. The Wanxiang Blockchain Conference every year has become a "barometer" for the mainland blockchain industry.

But the old OGs are clear in their hearts that the most precious things are those "historical imprints." The OKCoin office in Beijing's Xierqi has long since moved out, but the security guard at Yiquan Hui office building can still say, "There was a Canadian technical staff wearing glasses working overtime every day back then"; the old office of Binance at Shanghai SOHO Rejuvenation Plaza is now rented to an internet company, but the coffee shop owner downstairs still remembers, "A group of young people rushed in with laptops to order takeout"; at the venue of the Wanxiang Blockchain Conference, you can still find a photo exhibition from V God's speech in 2017.

During the conference, I deliberately went to SOHO Rejuvenation Plaza, stood at the elevator entrance on the 15th floor, as if I could still hear He Yi shouting "put more effort" and see CZ resting on a folding bed. The security guard next to me, upon hearing that I was looking for the "old Binance office," smiled and said, "People often come and ask, heard that the company is now doing great abroad?" I nodded, but felt complicated in my heart.

Shanghai's inclusiveness and openness nurtured Binance's initial form; and the baptism of the "94" storm forced Binance to choose to go overseas. Today, Shanghai still supports blockchain development, and Binance has also established its foothold overseas, but that "Shanghai version of Binance" will forever remain in the autumn of 2017.

The Jianghu of the Elderly and the Era of the Newcomers

At a dinner gathering, after discussing CZ, the topic naturally turned to veterans such as Xu Mingxing, He Yi, Li Lin, Du Jun, and "Second Master Bao." Some said Xu Mingxing's OKX is now focusing on compliance; some said He Yi is truly a diligent "customer service," some said Li Lin's Huobi has been consistent from start to end; some said individuals like Zhao Dong, who used to nibble on donkey meat buns in a garage coffee salon, have now become industry "elders." Their stories are actually a microcosm of the crypto world over the past decade: from grassroots growth to compliance, from domestic layout to global expansion, from technical obsession to business maturity.

On the other hand, young people around me are focused on "MEME," "decentralized DEX," "regulatory sandbox policy opportunities," and "RWA." They have not seen the rudimentary offices in West Second Ring Road, have not experienced the panic of '94, but they are entering this industry with more professional knowledge and clearer planning. Just like at this Shanghai Wanxiang Blockchain Conference, 90% of the attendees are young people under 30 years old. The topics they discuss have far exceeded the scope of "what is Bitcoin" back in the day.

A young man who had just entered the industry said to me: "CZ's story is too legendary. Now when we do a project, the first thing we consider is compliance. We will not walk the old path of the past." I was very moved when I heard this: the elders paved the way with lessons, and the newcomers are steadily moving forward on this path. Perhaps this is the inevitable development of the industry.

Future: The Balance Between Compliance and Innovation

CZ's pardon, while resolving his personal legal issues, has also left a deeper reflection for the industry: How should blockchain development balance innovation and compliance?

Binance's experience has already provided an answer: early rapid expansion indeed can seize the market, but neglecting compliance will eventually pay a heavy price. A $4.3 billion fine, four months of imprisonment – these lessons are enough to alert all crypto companies. Today's Binance, backed by a $20 billion investment from MGX, is fully advancing compliance construction and reportedly has obtained licenses in more than 10 countries globally.

Shanghai's development path may be another reference: guiding through clear policies, improving the industrial ecology, allowing blockchain technology to innovate within a compliance framework. From supply chain finance to digital governance, from copyright protection to agricultural traceability, Shanghai's blockchain applications have long surpassed the category of "virtual currency" and moved towards the real-world assets (RWA) and other aspects of the economy.

On October 24, 2025, CZ posted on X platform: "Thanks to President Trump, we will help the United States become the 'cryptocurrency capital.'" Meanwhile, in Shanghai, on the last day of the Wanxiang Blockchain Conference, a "Compliance and Innovation" roundtable forum was packed. On one side, there is the "political rehabilitation" of the world's largest exchange; on the other, the "down-to-earth progress" of mainland blockchain, two seemingly different paths but both pointing in the same direction: only compliant innovation can go the distance.

Conclusion: The rivers and lakes are not far, but the legends will always remain

Although Binance's headquarters is not in Shanghai, its connection to this city has never been truly severed.

Looking back over the past decade, from the donkey meat fire in Beijing's Xizhimen to pizza and coffee in Shanghai, from the folding bed in SOHO Rebirth Plaza to sovereign wealth fund investments in Dubai, from courtroom confessions to Trump's pardons, CZ's story is like an "epic" in the crypto world. And those contemporaries of his, those old places that witnessed it all, have become the industry's "living fossils."

Some say the crypto world is a "forgetful" circle, with new projects and hot topics emerging every day, causing old stories to be quickly forgotten. But I don't think so. Just like the office in SOHO Rebirth Plaza in Shanghai, like those familiar faces at Wanxiang Summit, like the dinner gathering of old OGs after CZ's pardon, these details have long been etched into the industry's DNA. In the future of the crypto world, there will be more "CZs," more "Binance stories," but the Binance dream born in Shanghai in the summer of 2017, along with the memories of original intentions, expansion, setbacks, and rebirth, will never be erased. Because it is not just the starting point of a company, but also the youthful imprint of an industry.

The world is not far, and legends endure. If you are a newcomer to #web3 #crypto #blockchain, then you must study some of the history before, because this circle has never been smooth sailing. But as long as you uphold the bottom line of compliance and maintain the original intention of innovation, you will surely see the light. Just as CZ said in SOHO Rebirth Plaza years ago: "Shanghai will always be the starting point of Binance."

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