Here’s the Story of How Crypto Uncle Changpeng Zhao Turned into Democrats’ Public Adversary Number One
There are few individuals in the realm of digital finance who have generated as much debate as Changpeng Zhao (CZ), the founder of Binance and a pivotal figure in the history of crypto asset. Initially celebrated as a forward-thinker for creating the largest crypto trading protocol globally, CZ’s downturn under the Biden administration has turned him into a representation of the increasing antagonism toward crypto from Washington.
The narrative surrounding Changpeng Zhao’s crypto journey, from his legal challenges in 2023 to his presidential pardon in 2025, now symbolizes the conflict between decentralized finance and Democratic oversight.
What Caused the Democrats to Turn Against Crypto Mogul CZ?
The divide between CZ and the Democratic party emerged in November 2023, following the sweeping legal actions taken by President Biden’s Department of Justice against Binance and its founder. The DOJ charged the exchange with breaches of the Bank Secrecy Act, highlighting a lack of adequate anti-money-laundering measures and permitting transactions involving sanctioned countries (such as Iran and Syria). Under pressure, CZ admitted to regulation shortcomings, not money laundering, and accepted a $4.3 billion settlement while resigning as Binance’s CEO.
CNBC: Another Crypto Industry Titan Faces Criminal Charges
• Conclusion of a lengthy DOJ investigation into crypto billionaire CZ and Binance, the trading network he established.
• Binance agrees to a landmark $4.3 billion fine, the largest in US history, according to the US… pic.twitter.com/wfLqBDnnAU
— Swan (@Swan) November 22, 2023
In April 2024, he was sentenced to four months in prison, serving his term and being released that September. Yet, even after his return to freedom, the impact remained evident. CZ repeatedly pointed out that he was acquitted of money laundering, framing the case as “a political statement against crypto.”
In a series of posts on X, CZ accused Democratic regulators of “weaponizing” the DOJ against digital currencies, claiming that his prosecution mirrored the party’s broader anti-crypto posture under Biden’s guidance.
A US Senator can’t seem to get her facts right in a public statement regarding a person’s charges. There were NO money laundering accusations.
Just five days before my sentencing, this same Senator declared a “war on crypto” on public television, during the Biden administration.
Need a clearer illustration of weaponization of… https://t.co/87gTMP6mcn pic.twitter.com/4j1Us48Nop
— CZ
BNB (@cz_binance) October 24, 2025
This tension escalated further in 2025 when Democratic Senator Elizabeth Warren accused him of admitting to “criminal money laundering charges.” In response, CZ retorted, “There were NO money laundering charges,” even threatening to take legal action against Warren for defamation. Warren’s legal representatives countered, asserting that her statement was “accurate” and “protected speech.”
Nevertheless, the exchange made it evident that CZ’s name had become synonymous with the Democratic battle against crypto.
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Was the Prosecution Motivated by Politics or Principles?
Supporters of Changpeng Zhao argue that the Democrats’ actions represented a political maneuver rather than a procedural necessity. Under Biden’s administration, officials like SEC Chair Gary Gensler adopted a stringent approach toward the industry, embracing a “regulation by enforcement” model instead of establishing clear guidelines.
CZ, alongside other notable individuals like Coinbase’s Brian Armstrong, became a focal point of what detractors labeled “anti-innovation policy.”
In my opinion, @cz_binance deserved to be pardoned. His legal troubles were politically driven, and the punishment was excessive. He was incarcerated for failing to implement an effective compliance program. Bankers also face crypto law issues frequently without facing similar consequences…
— Tyler Winklevoss (@tyler) October 24, 2025
Following the 2024 elections, the landscape changed. The triumph of President Trump was described by many in the crypto sector as a “policy reset.” Within months, Trump issued a presidential pardon to CZ on October 23, 2025, referring to the sentence as “unduly severe” and pointing out that it involved neither fraud nor theft.
I am immensely thankful for today’s pardon and to President Trump for upholding America’s dedication to fairness, innovation, and justice.
We will strive to ensure America is the Capital of Crypto and promote web3 on a global scale.
(Still airborne; additional updates forthcoming.)…
— CZ
Democrats reacted with indignation. Elizabeth Warren and members of the Senate Banking Committee described it as “pay-to-play corruption,” citing Binance’s alleged $2 billion investment in Trump’s stablecoin initiative. CZ refuted any insinuations of a quid pro quo, labeling the criticism as “another smear campaign from the anti-crypto establishment.”
The irony? CZ often asserts that he is merely a distributed ledger visionary and an educator in crypto.
Continue pushing forward. Education is a foundational element for widespread adoption. I wish educational institutions taught how to avoid following the crowd and selling at 6,000 after buying at 20,000. Life is much better when you do the opposite. https://t.co/FTj4aFTHZY
— CZ
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Can CZ Restore His Reputation, or Is His Conflict with Democrats Just Starting?
Despite his legal challenges, CZ has made a comeback regarding his standing in global digital currency markets. Binance continues to be the leading trading network by trading volume, and the surge in BNB and BTC following his pardon only reinforced the notion that crypto flourishes under more favorable regulations. Concurrently, his ongoing dispute with Democrats underscores a broader ideological struggle, focused on control, privacy, and the boundaries of financial liberty.
Whether his resurgence will endure beyond the political cycle remains uncertain. However, for the time being, Changpeng Zhao has transformed into more than just a legal story. It represents a political divide shaping the future of crypto finance in the United States.
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Key Takeaways
The post Here’s How Crypto Uncle Changpeng Zhao Became Democrats’ Public Enemy No.1 appeared first on 99Bitcoins.
