Trump Issues Pardon to Binance Founder Changpeng Zhao
Trump Issues Pardon: A group of seven Democratic senators, led by Elizabeth Warren (D-Mass.) and Bernie Sanders (I-Vt.), has called on Attorney General Pam Bondi and Treasury Secretary Scott Bessent to release detailed information surrounding President Donald Trump’s controversial pardon of Changpeng “CZ” Zhao, the billionaire co-founder of cryptocurrency exchange Binance.
In a sharply worded letter published Tuesday, the lawmakers questioned whether Trump’s personal business relationships and financial interests in the cryptocurrency sector played a role in his decision to grant clemency.
“President Trump’s substantial business ties to Mr. Zhao raise serious ethical and legal concerns,” the senators wrote. “The American people deserve to know whether this pardon was issued in the public interest — or to protect the president’s own financial interests.”
A Highly Unusual Pardon
Zhao, one of the most recognizable figures in global cryptocurrency, was convicted in 2024 of violating U.S. anti-money laundering laws and operating an unregistered financial exchange, charges that led to a multibillion-dollar settlement between Binance and the U.S. government. He was serving a four-year federal sentence before Trump’s unexpected pardon earlier this month.
The move stunned legal experts and financial regulators alike, marking one of the most controversial pardons of Trump’s second term. It also reignited concerns about the administration’s cozy relationship with the crypto industry, which has grown increasingly influential in Washington.
While the White House framed the pardon as an act of “economic pragmatism” aimed at “restoring U.S. competitiveness in blockchain innovation,” critics say it represents a dangerous precedent that undermines accountability for financial misconduct.
Lawmakers Demand Transparency
In their letter, the senators requested that both the Justice Department and the Treasury Department disclose:
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Any communications between Trump, his campaign, or the Trump Organization and representatives of Binance or Zhao prior to the pardon;
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A list of individuals or entities who lobbied for Zhao’s release;
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An assessment of potential conflicts of interest stemming from Trump’s business holdings in digital assets or related firms; and
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Details of any ongoing federal investigations into Binance, Zhao, or associated entities.
The lawmakers said the pardon “signals to cryptocurrency executives and other white-collar criminals that they can commit crimes with impunity, so long as they enrich President Trump enough.”
They urged federal agencies to respond no later than November 15, warning that failure to provide transparency could prompt a congressional inquiry or Senate Judiciary hearings into what they called “the most egregious abuse of presidential clemency in decades.”
Crypto Industry and Political Influence
The pardon comes amid growing scrutiny of Trump’s financial entanglements with the crypto sector. Since returning to office, the Trump family business has reportedly expanded its holdings in Bitcoin, Ethereum, and several blockchain startups, according to public filings and press disclosures.
Several former Trump aides have also joined major cryptocurrency firms in advisory or lobbying roles. Critics argue that this blurring of public and private interests has eroded trust in the administration’s financial policymaking.
Sen. Warren, who has long advocated for tighter crypto regulation, called the pardon “a message to wealthy insiders that justice is for sale.”
“If you’re a working-class American, you face the full force of the law,” she said. “But if you’re a billionaire with ties to the president, you get a free pass.”
Republican Response and White House Defense
Republican lawmakers defended Trump’s decision, framing Zhao’s pardon as part of a broader effort to “promote innovation and restore U.S. dominance in digital finance.”
“President Trump recognizes that crypto is the future,” said Sen. J.D. Vance (R-Ohio). “This pardon sends a message that America is open for blockchain business.”
The White House Press Office dismissed the Democrats’ letter as “a political stunt,” stating that Zhao had already “served sufficient time” and that the pardon “reflects the president’s commitment to fair treatment and economic progress.”
Administration officials added that Zhao had agreed to “cooperate fully” with ongoing U.S. investigations into international crypto crimes, including potential sanctions violations and fraud cases.
Ethical and Legal Concerns Mount
Legal analysts, however, say the pardon could have far-reaching consequences. “If the president personally benefited from Zhao’s business empire or his release, that raises questions of corruption and abuse of power,” said Dr. Marcia Ellison, a constitutional law scholar at George Washington University.
Some experts also noted that the Treasury Department’s Financial Crimes Enforcement Network (FinCEN) had been monitoring suspicious crypto flows linked to Binance even after its 2024 plea agreement — suggesting the case may not have been fully resolved.
“This isn’t just about one pardon,” Ellison added. “It’s about whether the machinery of justice can be used to reward political allies and wealthy donors without consequence.”
Next Steps: A Brewing Investigation
The senators’ letter marks the first formal step toward potential legislative oversight of Trump’s cryptocurrency dealings. Members of the Senate Banking Committee are reportedly discussing holding public hearings on the intersection of crypto regulation, presidential business interests, and the use of executive clemency.
Meanwhile, civil society groups and ethics watchdogs — including Citizens for Responsibility and Ethics in Washington (CREW) — have called for an independent investigation into the pardon, citing possible violations of the Emoluments Clause and federal bribery statutes.
As the controversy widens, the episode has reignited a broader debate over how much personal financial transparency a president should be required to maintain, especially in emerging sectors like cryptocurrency