President Donald Trump’s pardon of Binance co-founder Changpeng “CZ” Zhao has ignited a firestorm of both support and sharp criticism. The latest wave of scrutiny comes from seven Democratic senators who have formally requested additional information from U.S. Attorney General Pamela Bondi and Treasury Secretary Scott Bessent to elucidate the reasoning behind this decision.
In brief
- •Seven Democratic senators are demanding answers from the Justice and Treasury Departments regarding CZ’s pardon and its potential implications.
- •Lawmakers have expressed concern that the pardon could establish a precedent where individuals involved in criminal activity might evade consequences.
- •Senators have highlighted alleged financial and business connections between Zhao, Binance, and the Trump family, including involvement with the WLFI platform.
Senators Criticize Pardon’s Implications
The open letter, signed by Senators Elizabeth Warren, Chris Van Hollen, Bernard Sanders, Mazie Hirono, Richard Blumenthal, Jack Reed, and Jeffrey Merkley, raised concerns that the pardon could send a troubling signal to cryptocurrency executives and other white-collar offenders. This signal implies that criminal activity might go unpunished "so long as they enrich President Trump enough." The senators cautioned that such a precedent could encourage further illegal conduct and make it more difficult for federal authorities to enforce the law effectively.
Prior to the release of the open letter, Senator Elizabeth Warren had publicly condemned the pardon, describing it as a form of corruption. Her criticism highlighted concerns that the decision could undermine public trust in the rule of law.
Alleged Trump-Binance Connections Under Review
In detailing their concerns, the senators outlined alleged connections between Zhao, Binance, and the Trump family. These alleged connections include the following points:
- •During Trump’s presidential campaign, Zhao and Binance reportedly sought closer financial ties with the president and his family.
- •The senators pointed to the launch of the Trump family’s decentralized finance platform, World Liberty Financial (WLFI), introduced late last year, which has been linked to Binance’s operations.
- •They also referenced reports suggesting that Binance helped develop WLFI’s stablecoin, USD1, and promoted it to its 275 million users.
Reinforcing their criticism, the senators wrote that "after Mr. Zhao’s company provided President Trump and his family with a revenue stream worth millions of dollars, President Trump pardoned him for criminal activity that he admitted to conducting."
The open letter also noted that the pardon could undermine federal investigations, potentially compromising the work of law enforcement teams that spent years examining Binance’s activities. The senators reinforced their warning, writing that "It appears that corporate criminals can violate the law, be found guilty, and face criminal consequences—but if they or other executives help the President enough, they can be cleared of wrongdoing. This seems likely to encourage, not discourage, illegal activity."
Lawmakers Seek Answers on Trump’s Pardon Decision
To further clarify their position, the lawmakers sought additional information from the Justice and Treasury Departments on several key issues related to the pardon. Specifically, they requested:
- •An explanation of how President Trump’s decision to pardon Changpeng Zhao might affect individuals and companies involved in criminal activity more broadly.
- •An assessment of the impact the pardon could have specifically on people and businesses within the cryptocurrency industry that may be engaged in unlawful conduct.
- •An understanding of how the pardon might be perceived by federal law enforcement personnel, especially amid reports of strong business connections between Binance and the Trump family.
- •An inquiry into whether President Trump’s business relationship with Zhao may have played a role in his decision to grant the pardon.
This letter follows criticism from U.S. Representative Maxine Waters, the top Democrat on the House Financial Services Committee. Waters described the pardon as both shocking and consistent with Trump’s presidency, which she characterized as favoring individuals involved in criminal activity over the interests of working-class Americans.
In response to questions about Zhao’s pardon, President Trump stated that he did not personally know Zhao and did not recall ever meeting him. He added that some viewed Zhao’s actions as not criminal and indicated that he issued the pardon at the request of "a lot of very good people."