In a contentious move that has sparked significant debate within the crypto community and political circles, U.S. Representative Maxine Waters has sharply criticized President Donald Trump’s decision to pardon Binance founder Changpeng “CZ” Zhao. The pardon, which comes amidst ongoing scrutiny of crypto regulation and the legal status of major figures in the industry, raises questions about the influence of political connections and the intertwining of cryptocurrency ventures with political figures.
In a recent and controversial development within the realm of cryptocurrency, U.S. President Donald Trump issued a pardon for Changpeng “CZ” Zhao, founder and former CEO of Binance. Trump stated that Zhao’s actions were not criminal, sparking widespread questions about the legitimacy of the pardon amidst ongoing debates over crypto regulation and enforcement. The move has drawn sharp criticism from lawmakers, notably Maxine Waters, a leading Democrat and the top member of the House Committee on Financial Services.
Waters Criticizes the Pardon
Waters, speaking out publicly, accused Trump of rewarding individuals she claims have helped facilitate illicit activities within the crypto space. She accused Zhao of pleading guilty to enabling money laundering and facilitating transactions linked to child exploitation, drug trafficking, and terrorism, calling the pardon “an appalling”—yet unsurprising—reflection of Trump’s approach to governance.
“Trump is doing massive favors for crypto criminals who have helped line his pockets,” Waters stated in a formal declaration.
She also alleged that Zhao’s lobbying efforts, funded by billions funneled into his company and associated entities, played a role in securing the pardon. Waters’ criticism underscores concerns over the close ties between the Trump administration and certain parts of the crypto industry, particularly those with legal or regulatory issues.
Waters’ remarks come amid reports revealing that Trump’s second term has been particularly profitable, driven in part by his expansive crypto ventures. Her analysis ties Zhao’s pardon to a broader pattern of political and financial entanglements, which include a rapidly growing cryptocurrency empire associated with the Trump family.
Crypto Empire and Family Finances
Of particular note is World Liberty Financial, a DeFi firm founded by Trump’s sons and associates, which has reportedly sold billions of dollars worth of tokens and stablecoins. Trump disclosed earning $57.4 million from his involvement with the company in June, with recent estimates indicating the family’s holdings could be worth over $5 billion following recent token unlocks, and annual earnings approaching half a billion dollars.
These figures have raised questions about conflicts of interest and regulatory oversight, with critics arguing that Trump’s personal financial interests, intertwined with his political activities, could undermine efforts for equitable regulation within the crypto markets.
As the crypto industry continues its rapid expansion, with increased adoption of blockchain technology, NFTs, and DeFi platforms, the intersection with political influence remains a topic of intense scrutiny and debate—especially amid ongoing discussions about crypto laws, regulation, and transparency in the United States.