Trump and Crypto: A Chronology of Radical Mistakes by Influential Industry Figures

Brief Overview

• The year 2025 marked a turning point for the crypto sector during Trump’s second presidential term
• Silk Road founder, leaders of BitMEX and Binance received pardons
• These steps fulfilled campaign promises to end federal “persecution” of digital assets
• Opponents of the president cite political bias and conflicts of interest related to family business in crypto

From Silk Road to the White House: Ulbricht’s Pardon Changed the Game

Trump’s first and most high-profile move was in early January, when he granted a pardon to Silk Road creator Ross Ulbricht. He had served over ten years in prison for operating an illegal dark web marketplace, including involvement in money laundering and Bitcoin transactions.

On the Truth Social platform, the president described his decision as a response to years of political pressure. He called previous government actions against the crypto industry “nonsense,” signaling a fundamental reassessment of federal stance.

Ulbricht did not waste time: a few months later, he appeared at Bitcoin 2025, where he shared his release story and thanked the activist community. This step symbolized a return to the crypto scene for one of the most controversial figures in the industry.

Critics, primarily former prosecutors, argued that the pardon undermined a legendary cybercrime investigation. However, there were supporters in Congress: Representative Thomas Massey publicly praised the decision as fulfilling a long-standing promise.

BitMEX Cleared: How Trump Rewrote Compliance Standards

In March, Trump expanded the list of pardons to include BitMEX founders — Arthur Hayes, Benjamin Delo, and Samuel Reed, as well as early investor Greg Dwyer.

All admitted guilt in 2022 for failing anti-money laundering standards but received probation and fines. The pardon removed their criminal status, effectively nullifying the case’s consequences.

BitMEX publicly called this decision a “chapter closed,” which it had been trying to leave behind. Hayes thanked the president on social media. This action contrasted with the previous administration’s policy, which insisted on strict regulatory requirements for crypto platforms operating with American clients.

Zhao and the Conflict of Interest Scandal: Trump’s Most Controversial Pardon

The most high-profile reaction from adult officials involved the pardon of Binance founder and CEO Changpeng Zhao in October. He admitted guilt in money laundering in November 2023 and served a four-month prison sentence.

The White House officially framed this as the end of “Biden’s crypto policy.” However, Senator Chris Murphy pointed to suspicious parallels: a stablecoin linked to Trump family projects and Binance’s deal in Abu Dhabi worth $2 billion, involving this token.

While direct evidence of a connection has not been confirmed, it reignited discussions about potential conflicts of interest between the administration and World Liberty Financial — a crypto venture associated with the presidential family.

During a 60 Minutes interview, Trump denied personal ties to Zhao, calling him a “respected person” and a “scapegoat” of the previous administration’s witch hunt. When asked about his sons’ activities in crypto, he replied: “They run private businesses; they do not work in the government.”

Zhao expressed “deep gratitude” on social media but remained detached from an active role in Binance.

Policy Reassessment: Regulation at a Crossroads in 2025

Together, these three pardons abolished decades of federal approaches to crypto industry oversight. Trump supporters claim he kept his word to the crypto community voters.

Critics warn of the danger of blurring the lines between justice and political loyalty. Senator Elizabeth Warren sharply stated: “First, Zhao admitted guilt in money laundering. Then he supported Trump’s crypto projects and lobbied for his own pardon. Today, the president paid him off. If Congress fails to address this corruption through new legislation, it becomes complicit.”

The political consequences of these decisions will determine how lenient or strict the government will be in regulating crypto in the coming years. The industry received a strong signal: the federal stance has fundamentally shifted.