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Senators from the Democratic Party have urged US Attorney General Pam Bondi and the US Department of Justice to supply further details concerning the pardon of Binance co-founder Changpeng “CZ” Zhao by President Donald Trump.
In a public communication on Tuesday, seven Democratic senators stated that the pardon “indicates to cryptocurrency executives and other corporate criminals that they can engage in unlawful activities without consequences.” The lawmakers accused Trump of fostering criminal behavior “as long as it benefits him financially.”
This letter follows similar remarks from US Representative Maxine Waters, the leading Democrat on the House Financial Services Committee, earlier this week, who remarked that “Trump is rendering significant favors for crypto criminals who have contributed to his wealth.”
The signatories encompass Senators Elizabeth Warren, Chris Van Hollen, Bernard Sanders, Mazie Hirono, Richard Blumenthal, Jack Reed, and Jeffrey Merkley. They mentioned that “this pardon will hinder Federal law enforcement’s capacity to combat and prevent crime.”
Related: Trump’s second term nurtures a $1B crypto fortune for his family: Report
Senators claim connections between Trump and Binance
In the communication, the senators emphasize numerous alleged connections between Zhao, Trump, and Binance. Trump’s family established their decentralized finance (DeFi) platform World Liberty Financial (WLFI) late last year, which has been associated with Binance’s activities.
The rollout was succeeded by allegations that Zhao arranged introductions and meetings for WLF leaders, which CZ refuted in late May. Additional reports imply Binance played a part in creating the code for USD1, the stablecoin released by WLFI.
“After Mr. Zhao’s company provided President Trump and his family with a revenue source worth millions of dollars, President Trump granted him a pardon for illegal activities he acknowledged to have engaged in.”
Reports from earlier this month also indicated that Zhao’s pardon succeeded a lobbying initiative by Binance, which combined $450,000 to Trump-aligned lobbyists and $290,000 to former Securities and Exchange Commission chair candidate and attorney for CZ, Teresa Goody Guillén.
Related: Crypto executives contribute funds at Trump’s ballroom fundraiser
Lawmakers query effects on law enforcement
The senators contended that Trump’s pardon might “publicly and blatantly weaken the efforts of federal law enforcement” and convey a message to “cryptocurrency executives and other corporate criminals that the law is inconsequential.”
They sought that the Department of Justice and Bondi elucidate the projected impact of the pardon on individuals and organizations involved in illicit conduct, particularly in the crypto sector. They also demanded clarification on whether Trump’s purported financial associations with CZ swayed his decision to grant the pardon.
Trump pardoned CZ last week, asserting that individuals informed him “what he did was not even a violation.” Zhao had pleaded guilty in 2024 to breaching the US Bank Secrecy Act by failing to uphold an effective Anti-Money Laundering program at Binance.
Magazine: Trump’s crypto endeavors raise questions about conflicts of interest and insider trading
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