Last month, former President Donald Trump issued a controversial pardon for billionaire Chinese-born businessman Changpeng Zhao, founder of the cryptocurrency exchange Binance. The decision has sparked considerable outrage due to Zhao’s prior criminal conviction for failing to prevent money laundering, which was linked to significant national security concerns for the United States.
The pardon, which Trump claimed he granted without having prior knowledge of Zhao, came shortly after reports indicated that Binance had supported a business venture led by Trump’s family. Elizabeth Oyer, former head of the pardon application vetting process at the Justice Department, expressed strong disapproval, stating that Zhao did not meet the established criteria for a pardon. Oyer described the circumstances surrounding the pardon as unprecedented in terms of financial influence, labeling it a clear case of corruption.
In 2023, Zhao and Binance reached a plea agreement that included a $4 billion fine and a four-month prison sentence for Zhao. Critics, including Oyer, argue that his financial dealings had enabled criminal activities, including alleged partnerships with terrorist organizations.
As the 2024 presidential campaign heats up, Trump has positioned himself as a vocal supporter of the cryptocurrency industry. He, alongside family members and associates, announced plans to establish a new cryptocurrency firm called World Liberty Financial, which aims to provide financial services through digital currency. The launch of this venture, however, has raised eyebrows, particularly given the company’s initial struggles, including a lack of substantial backing and resources.
Significantly, Zhao’s Binance reportedly provided critical software to World Liberty, vital for its operational launch. Information from industry insiders suggested that without this technological support, World Liberty might not have been able to function effectively. A substantial deal involving a $2 billion investment from an Emirati fund in Zhao’s Binance, executed using World Liberty’s cryptocurrency, catalyzed a dramatic transformation for the nascent firm.
Although World Liberty had not gained much traction prior to the deal, the sudden financial backing instantly elevated it to a prominent status within the cryptocurrency landscape. Experts have pointed to the unusual timing of this investment, noting its coinciding with Zhao’s application for a presidential pardon as well as broader implications for U.S. foreign policy.
The Emiratis expressed that their choice to invest in World Liberty was based on its “business suitability,” but observers have raised concerns about the motivations behind such investments. Legal experts speculate that transactions of this nature could manipulate U.S. foreign relations by introducing a culture of informal exchanges and potential conflicts of interest.
The result of Zhao’s financial involvement with World Liberty is significant; it positions him as a powerful figure with leverage over the fledgling company. Some analysts have highlighted the potential for Zhao’s control over World Liberty to benefit Trump and his partners financially, raising ethical implications regarding Trump’s dual role as president and business owner.
Despite the controversies surrounding Zhao’s pardon and the dealings with World Liberty, both Zhao and Trump have denied any conflicts of interest. Trump’s administration stated that there had been no improper interactions between Trump and Zhao’s businesses, and Eric Trump, who co-founded World Liberty, claimed his father was uninvolved.
Nonetheless, constitutional and ethics scholars have warned that the intertwining of private financial interests and public policy raises serious concerns regarding governance and accountability. The fallout from this situation highlights the ongoing debates about the ethical use of pardons, financial influence in politics, and public trust in government institutions.
Changpeng Zhao did not respond to requests for an interview regarding these allegations and his connection to the Trump family. The revelations have left many questioning the integrity of the presidential pardon system and the impact of money on American politics.
