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Connor Sephton
Represents the writer
Connor Sephton
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Elena Božkova
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Elena Božkova
It’s official: Donald Trump pardons Binance founder Changpeng Zhao — a move that has enraged the president’s critics and fueled accusations that his crypto interests have a direct bearing on the actions of the White House.
“CZ” ended up serving almost four months in prison after he and his exchange pleaded guilty to failing to maintain an effective anti-money laundering program that allowed criminals to use the platform for illicit funds.
As Cryptonews previously explained (in an opinion arguing why CZ clemency should not occur) these breaches “allowed money to flow to terrorists, cybercriminals and child abusers” – aiding human and drug traffickers, as well as militant groups such as Hamas, as well as countries facing economic sanctions.
While Trump has repeatedly tried to sweep any allegations of a conflict of interest under the rug, there’s no denying the president has ties to the billionaire.
Earlier this year Middle East investment fund says it’s using $2 billion of $1, the stablecoin launched by Trump’s firm World Liberty Financial, get a share Binance.
White House press secretary Karoline Leavitt sought to justify CZ as a remedy to the heavy-handed tactics used by Democrats — claiming the Biden administration was waging a “war on cryptocurrencies.” She added:
“In its desire to punish the cryptocurrency industry, the Biden administration has pursued Mr. Zhao without regard to allegations of fraud or identifiable victims.”
However, there is a difference between lifting aggressive regulations that have stunted the growth of the crypto industry and forced exchanges to move abroad, and erasing serious criminal convictions. The pardon of CZ cannot be compared either pardon granted to Silk Road founder Ross Ulbricht.
Democratic Senator Elizabeth Warren — a vocal critic of the president and digital assets more broadly — had this to say on X, writing:
“CZ pleaded guilty to money laundering charges and was sentenced to prison. But then he financed President Trump’s stablecoin and lobbied for a pardon. He got it today. If Congress doesn’t stop this kind of corruption, he owns it.”
She previously wrote repeated letters warning that foreign investment and interests in presidential family businesses could mean the US justice system no longer “operates without undue political and financial influence”.
Some went even further – with the account of economics professor Eswar Prasad of Cornell University The New York Times that the Trump administration was engaged in “brazen disregard for the rule of law.”
“This pardon has little justification and highlights the lengths to which this administration will go to promote the cryptocurrency industry.”
Journalist Isaac Saul continued the description Changpeng Zhao as “comically corrupt” — and claimed the billionaire was treated favorably because he helped raise $TRUMP. Noting how surreal the political climate in the US is right now, he added that it would be “a month-long scandal in any other normal administration.”
Trump has also faced criticism from members of the crypto community, who fear the CZ pardon could embolden bad actors. Businessman Nick O’Neill responded to the news saying:
“CZ can get away with literally anything at this point. That’s corruption at the highest level as far as I’m concerned… Are you kidding me? I’m a big supporter of the crypto industry and it’s absolutely critical that we have a regulatory framework in the United States… Trump basically supports all his cronies and says, ‘Yeah, you can help me as long as you want.’
CZ wasted no time sharing an update to his 10 million followers on X.
“I am deeply grateful for today’s apology and for President Trump’s support of America’s commitment to honesty, innovation and fairness. We will do everything in our power to make America the cryptocurrency capital and advance Web3 around the world.”
It is highly likely that Binance will now try to re-enter the US market — and it is entirely possible that CZ could one day return as CEO.
The news of the pardon helped the crypto markets BNB has become one of the top performing altcoins in the last 24 hours – up 6.2% at the time of writing.
“Congratulations CZ” may be trending on X, but for the broader crypto industry, such a close association with Trump could have ramifications further afield.
