Connecticut Senator Chris Murphy has publicly criticized Binance.US, suggesting the cryptocurrency exchange may have influenced U.S. President Donald Trump's decision to pardon former Binance CEO Changpeng “CZ” Zhao.
In a recent X post, Senator Murphy drew attention to a Binance.US announcement regarding the launch of trading for USD1, a stablecoin linked to the Trump family's crypto company, World Liberty Financial. Murphy pointed out the timing of this promotion, occurring only a week after the president granted a pardon to Zhao, who he referred to as Binance's owner.
The presidential pardon granted to Zhao on October 23rd has been a subject of considerable discussion within both the cryptocurrency community and congressional circles. Although Zhao had previously stated in May that he had applied for a presidential pardon, concerns have been raised about potential financial incentives influencing the decision. These concerns include reports of an Abu Dhabi-based company investing $2 billion in Binance, utilizing the USD1 stablecoin.
It is important to note that while the Binance and Binance.US exchanges share a common name, they operate as distinct legal entities. Cointelegraph reached out to both Binance.US and Senator Murphy's office for comments regarding these allegations. However, no response had been received by the time of publication.
Ongoing Scrutiny Into CZ’s Pardon
A number of lawmakers in both the House of Representatives and the Senate have voiced their concerns and called for investigations into the pardon of CZ. Some have openly criticized the move, with a group of seven senators sending a letter to the Justice Department on Tuesday. In their letter, they stated that the pardon “signals to cryptocurrency executives and other white-collar criminals that they can commit crimes with impunity.”
Additionally, on Monday, California Representative Ro Khanna announced his intention to introduce legislation aimed at prohibiting any U.S. president, their family members, and members of Congress from engaging in cryptocurrency or stock trading. Khanna specifically referenced the pardon of Zhao, describing it as an instance of “blatant corruption” within the White House.