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Binance logo with presidential pardon document and cryptocurrency coins alongside tax forms illustrating CZ pardon and crypto tax obligations

CZ Pardon: What Binance Users Need to Know About Crypto Taxes in 2025

  • Anna Mae Garcia
  • October 30, 2025

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CZ Gets Presidential Pardon – Here's What Crypto Traders Need to Know

Big news in the crypto world this week: Former Binance CEO Changpeng Zhao (CZ) just got pardoned by President Trump. If you've been trading on Binance or any other exchange, this is actually a pretty significant moment for the industry – and it could affect how regulators treat crypto going forward.

What Happened With CZ?

Back in 2023, CZ pleaded guilty to not having proper anti-money laundering (AML) programs in place at Binance. He ended up serving four months in prison and paid a $50 million fine personally. Binance itself had to cough up $4.3 billion in one of the biggest corporate settlements ever.

The White House is now calling the previous administration’s approach a “war on crypto,” saying CZ’s prosecution was overreach since there were no fraud charges or actual victims involved.

Split illustration comparing CZ's pardon and release with crypto trader's continuing tax obligations for 2025 filing season

Why This Matters for Your Crypto Taxes

Here’s the thing – even though enforcement priorities are shifting, the IRS isn’t backing off crypto tax reporting. In fact, they’re doubling down. So while CZ gets a fresh start, you still need to:

  1. Report all your trades: Every crypto-to-crypto swap, every sale, every conversion is a taxable event. The IRS has been getting transaction data from exchanges like Binance for years now.
  2. Track your cost basis: With all the regulatory uncertainty, exchanges sometimes shut down or change their data retention policies. Don’t rely solely on exchange records – keep your own records of what you paid for each crypto asset.
  3. Watch out for AML flags: CZ got in trouble for weak AML controls. If you’re using exchanges that don’t have proper compliance, you could face extra scrutiny. Stick with platforms that issue proper tax forms (like 1099s).
  4. International exchange risks: Binance operates globally, and if you’ve traded on Binance.com (not Binance.US), you need to report foreign accounts on your FBAR if your aggregate foreign holdings exceeded $10,000 at any point during the year.

The Bigger Picture

CZ says he wants to help make America the “crypto capital of the world,” and the current administration seems crypto-friendly. But here’s what we tell all our clients: regulatory attitudes change, but tax obligations don’t.

The IRS has been crystal clear – they want their cut of crypto gains whether it’s a bull market or bear market, whether the President loves crypto or hates it. They’ve hired thousands of new agents specifically trained on digital assets, and they’re using blockchain analytics to track unreported transactions.

What You Should Do Now

  1. Get organized: If you traded on Binance or any exchange in 2024 or 2025, download your transaction history NOW. Don’t wait until tax season.
  2. Calculate your gains properly: Use crypto tax software or work with a professional who knows crypto. Mess this up and you could trigger an audit.
  3. Don’t assume anything is “forgotten”: The IRS has been sending warning letters to crypto holders for years. That trade you made in 2021? They probably know about it.
  4. Consider tax-loss harvesting: With crypto prices bouncing around, there might be opportunities to offset gains before year-end.

The Bottom Line

CZ’s pardon is great news for him and signals a more crypto-friendly regulatory environment. But don’t confuse regulatory enforcement with tax compliance. The IRS doesn’t care about politics – they just want accurate reporting and their tax revenue.

Whether you’re a casual trader or running a crypto business, staying on top of your tax obligations is non-negotiable. The penalties for underreporting crypto income can be steep – we’re talking 20-40% penalties plus interest on top of the taxes you already owe.

Need help sorting out your crypto taxes? That’s literally what we’re here for. Don’t let regulatory headlines distract you from the basics – track your trades, calculate your gains, and file accurately.

Stay compliant out there!

For expert assistance in managing your crypto tax obligations and to experience the peace of mind that comes with precise tax filing, don’t forget to explore our cutting-edge crypto tax preparation service. Your financial clarity and confidence start here.

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