Trump Pardons BitMEX: Why Not CZ Binance?
On March 28, 2025, U.S. President Donald Trump granted full pardons to BitMEX co-founders Arthur Hayes, Benjamin Delo, and Samuel Reed for violations of the Bank Secrecy Act. Yet Changpeng Zhao (CZ), former CEO of Binance, served jail time in 2024 for similar charges—and still awaits a pardon. Trump pardons BitMEX, but why not CZ Binance? The question continues to stir debate, especially in the MENA region’s crypto hub, the UAE.
While both cases center on crypto compliance failures, the outcomes differ. Here’s why that may be.
BitMEX Co-Founders: A Path to Clemency
In 2020, the U.S. Department of Justice charged BitMEX’s leadership with failing to implement adequate anti-money laundering (AML) and know-your-customer (KYC) measures under the Bank Secrecy Act. Despite restrictions, the platform facilitated over $1 billion in U.S. trades.
The co-founders pleaded guilty in 2022. Hayes and Delo received probation and six months of home confinement, while Reed was sentenced to 18 months of probation. Collectively, they paid $30 million in fines, and BitMEX agreed to a $100 million settlement.
Trump’s 2025 pardons cleared their records, signaling a crypto-friendly stance. But for many in the MENA region, it raised another question: why not CZ Binance?
CZ Binance: Jail Time, No Pardon (Yet)
In 2023, CZ pleaded guilty to similar charges under the Bank Secrecy Act, including failures in AML/KYC implementation at Binance. The platform was also cited for enabling nearly $900 million in sanctions-violating transactions. CZ stepped down as CEO, paid a $50 million fine, and served four months in prison in 2024. Binance itself agreed to a $4.3 billion settlement.
Despite clear similarities to BitMEX, CZ has yet to receive a pardon. As a UAE resident and public figure in the region’s digital asset ecosystem, CZ remains a central figure. So, why not CZ Binance?
Different Cases, Different Stakes?
While the charges overlap, the scale and political implications differ. Binance’s violations included sanctions breaches—raising national security concerns—whereas BitMEX was primarily accused of regulatory evasion. Moreover, Binance processed trillions in trading volume compared to BitMEX’s billions, adding weight to CZ’s case.
Timing may also be a factor. CZ’s sentencing occurred before Trump’s 2025 shift toward crypto leniency. BitMEX’s case, coming later, aligned more closely with that new narrative.
The outcomes reflect that gap. BitMEX’s leaders avoided jail time and received pardons. CZ served time and faced significantly larger penalties. Still, speculation persists. A March 13, 2025, Wall Street Journal report suggested a possible Trump family stake in Binance.US might be tied to any future clemency deal. CZ denied such talks on X, but the question remains: why not CZ Binance?
UAE Crypto Hub: A Strategic Position
CZ’s UAE citizenship and Binance’s deep regional ties offer a unique angle. In March 2025, Abu Dhabi-based MGX, backed by a UAE sovereign wealth fund, invested $2 billion into Binance, securing a minority stake. This move further cemented the UAE’s status as a leading crypto hub—a contrast to BitMEX, which lacked such geopolitical support.
If a pardon hinges on a Binance.US deal, it’s a condition BitMEX never faced. This raises new questions about fairness and precedent. Why not CZ Binance under the same terms?
Crypto Regulation in Focus
The contrast in outcomes puts crypto regulation in the spotlight. Trump pardoned BitMEX without hesitation, but CZ’s case seems to involve broader political and financial negotiations. For the MENA region—where jurisdictions like the UAE is actively shaping digital asset frameworks—these cases offer a study in how regulation, politics, and perception intersect.
Fairness is at the core of the debate. BitMEX’s co-founders walked away with clean records. CZ, by contrast, may have to trade equity for freedom.
What’s Next?
Trump pardoned BitMEX. But why not CZ Binance? Is it about timing? Scale? Or a behind-the-scenes Binance.US deal? Or even a political high level deal?
