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Crypto Reporter
Shalini Nagarajan
Crypto Reporter
Shalini Nagarajan
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Senator Elizabeth Warren sharply on Thursday criticized President Donald Trump the decision to pardon Binance founder Changpeng Zhaocalling it an example of political corruption that Congress must address.
Her comments followed reports that Zhao, known widely as CZ, had sought closer ties to Trump’s inner circle in recent months.
According to the Wall Street Journal, Zhao and his associates have supported initiatives related to the Trump family’s crypto businesses that have come under scrutiny from US lawmakers.
Trump’s inner circle considered the CZ case weak, Warren fires back
Trump has reportedly told aides that he believes prosecutors have unfairly targeted Chao. Several insiders said Trump considered the fraud case against Zhao to be weak and not worthy of a felony charge or prison sentence.
In a post on X, Warren wrote: “CZ pleaded guilty to money laundering charges and was sentenced to prison. But then funded President Trump’s stablecoin and lobbied for clemency.”
“If Congress doesn’t stop this kind of corruption, it owns it,” she added.
Zhao denies claims of involvement in Trump Family’s $1 token
Zhao has denied being directly involved in financing Trump’s stablecoin project, USD1, which is issued by World Liberty Financial, a company linked to the former president’s family.
However, this was reported by the Bloomberg agency Binance provided the technical code for the underlying smart contract of the token that governed its creation and transfer. The token was later used in a $2 billion transaction when a A UAE-based firm has bought a stake in Binance.
Zhao publicly dismissed the report, calling it “another hit” and claiming it was “sponsored by a competitor”. He accused the publication of spreading fear and misinformation in the crypto community.
Warren accused of misrepresenting CZ case as Trump pardon debate heats up
Warren’s remarks reignited the debate over Zhao’s legal past. Critics argued that Warren misrepresented his convictions, noting that Zhao pleaded guilty to failing to implement adequate anti-money laundering controls rather than committing money laundering himself.
The 2023 Zhao Agreement resolved one of the largest enforcement actions in US cryptocurrency history. He admitted that Binance did not have sufficient “know your customer” and compliance procedures in place to allow illegal transactions on the exchange.
As part of the settlement, Binance paid a $4.3 billion fineand Zhao personally paid $50 million before stepping down as CEO. He served four months in prison in 2024.
CZ thanks Trump and pledges to help make America the cryptocurrency capital
After receiving Trump’s pardon, Zhao said he was “deeply grateful” and pledged that Binance would support US leadership in digital assets.
“We’re going to do everything we can to make America the cryptocurrency capital and push web3 around the world,” he said.
The decision to pardon Chao divided political opinion. While Warren and several Democratic lawmakers decried the move as a setback for accountability, many cryptocurrency advocates see it as a turning point for fairer treatment of the industry.
The controversy comes at a pivotal moment for the regulation of digital assets in the US. The Trump administration has backed legislation to clarify oversight of exchanges and stablecoins, while Warren continues to push for tighter restrictions on crypto platforms.
