President Donald Trump has granted a full pardon to Changpeng “CZ” Zhao, the founder of Binance, following his recent conviction for violating U.S. anti-money-laundering laws. Zhao, who had served four months in federal prison and resigned as CEO of the world’s leading cryptocurrency exchange, was pardoned amid increasing scrutiny surrounding the administration’s ties to the crypto industry.
The pardon was met with immediate backlash from leading Democrats, including Representatives Maxine Waters and Elizabeth Warren, who characterized the action as a clear example of “pay-to-play corruption.” Waters condemned the decision, highlighting that Zhao had pleaded guilty to serious charges involving facilitation of money laundering and suspicious transactions linked to child abusers, drug dealers, and terrorists. She labeled the move as emblematic of Trump’s presidency, which she claims prioritizes corruption and self-interest over the welfare of American families.
The White House defended the decision, with Press Secretary Karoline Levitt suggesting that the pardon effectively ends what she described as “the Biden Administration’s war on crypto.” According to Waters, Zhao had been lobbying Trump and his family while reportedly funnelling billions into Trump’s personal crypto venture, World Liberty Financial. She criticized the pardon as a blatant payoff, indicative of systemic corruption within the administration.
Concerns have also been raised regarding Trump’s financial ties to the crypto industry, with reports indicating that his family has reportedly profited up to $1 billion from cryptocurrency enterprises. Zhao’s Binance platform has made significant investments in Trump’s businesses, further complicating the narrative surrounding the pardon.
When pressed by reporters about the potential conflicts of interest, Trump dismissed their inquiries, branding them as “fake news” and claiming that he acted at the behest of individuals who believed Zhao’s actions were not criminal. Trump emphasized that he had received requests from “a lot of very good people” advocating for Zhao’s pardon.
Elizabeth Warren voiced her disapproval on social media, suggesting that if Congress did not put a stop to such perceived corruption through pending market structure legislation, it would be complicit in unleashing further lawlessness. Zhao, in response, refuted Warren’s claims, stating there were no money laundering charges against him.
The pardon has generated speculation regarding the future of Zhao in the crypto landscape, with analysts suggesting it could streamline his reinstatement as CEO and boost Binance’s growth in the U.S. market. Peter Chung, head of research at Presto Research, noted that such developments would align with Trump’s ambition to establish America as the “Capital of Crypto.”
In a broader context, the pardon has sparked discussions about potential future pardons in the crypto realm, with speculation growing around FTX founder Sam Bankman-Fried, who is currently serving a lengthy sentence for fraud. Though the likelihood of such a pardon remains uncertain, the implications of Trump’s recent actions continue to reverberate through both political and financial sectors.
