Democrats Blast Trump’s ‘Corrupt’ Cz Pardon

What Happened

The company was ordered to pay more than $4.3 billion in fines after federal investigators concluded it had facilitated transactions linked to sanctioned countries, terrorists, and child exploitation networks.

“The pardon publicly and flagrantly undermines the work of the federal law enforcement teams that spent years investigating and prosecuting Binance’s offenses,” the lawmakers wrote.

Binance reportedly held discussions with World Liberty Financial, a crypto company launched in 2024 by Trump, his sons, and real estate developer Steve Witkoff, about developing a stablecoin.

In March 2025, World Liberty Financial announced the launch of USD1, a token minted on Binance Smart Chain. Later reports revealed Binance had written the token’s underlying code and promoted it to its 275 million users.

In May, an Emirati firm linked to Witkoff announced a $2 billion USD1 investment in Binance, a deal that reportedly generated tens of millions in potential revenue for Trump’s business interests.

Market Context

Senators warned that the pardon undermines years of law enforcement work by the Department of Justice, Treasury Department, and Commodity Futures Trading Commission, which coordinated the case.

Zhao, in response, expressed gratitude for the pardon, saying he would “support U.S. leadership in digital assets” and help “make America the Capital of Crypto.”

Why It Matters

In a sharply worded letter addressed to Attorney General Pamela Bondi and Treasury Secretary Scott Bessent, a group of Democratic senators, led by Elizabeth Warren, Bernie Sanders, Chris Van Hollen, Jack Reed, and Mazie Hirono, demanded explanations on how Trump’s pardon could impact future white-collar and cryptocurrency-related prosecutions.

The lawmakers said the move “signals to cryptocurrency executives and other white-collar criminals that they can commit crimes with impunity, so long as they enrich President Trump enough.”

Details

Democratic lawmakers are accusing President Donald Trump of political corruption after his controversial decision to pardon former Binance CEO Changpeng “CZ” Zhao, reigniting tensions between the White House and Congress over crypto industry influence in U.S. politics.

Was the CZ Pardon Justice — or a Favor? Lawmakers Want Answers

The letter referenced Zhao’s 2023 guilty plea to federal charges for failing to maintain an adequate anti-money-laundering program at Binance.

Zhao himself served four months in prison before being released in mid-2024.

They called for detailed responses from Bondi and Bessent by November 4, asking whether Trump’s business connections with Zhao influenced his decision.

The outrage follows mounting evidence of deepening financial ties between the Trump family and Zhao’s network in the months leading up to the pardon.

Sen. Warren, Rep. Waters Slam Trump’s Pardon of CZ Amid Stablecoin Scandal

Just months later, on October 23, Trump granted Zhao a presidential pardon.

“This appears to be a clear example of political corruption,” Sen. Warren said last week, accusing Trump of “selling pardons to wealthy allies.”

In a post on X, she added, “CZ pleaded guilty to criminal violations and went to prison. Then he financed Trump’s stablecoin and lobbied for a pardon. If Congress doesn’t stop this kind of corruption, it owns it.”

Representative Maxine Waters also condemned the decision, calling it “an appalling but unsurprising reflection of Trump’s presidency.”

In a statement, she accused Trump of prioritizing “crypto criminals who have helped line his pockets” while Americans face rising living costs and an ongoing government shutdown.

“Trump’s pardon of CZ effectively legitimizes the crypto crime he was convicted of,” Waters said.

He denied directly funding Trump’s stablecoin venture, dismissing media reports as “misinformation” from competitors.

Crypto’s Political Spending Under Fire as Trump’s CZ Pardon Sparks Backlash