{"id":17466,"date":"2025-10-29T14:08:37","date_gmt":"2025-10-29T13:08:37","guid":{"rendered":"https:\/\/wsj-crypto.com\/?p=17466"},"modified":"2025-10-29T14:08:37","modified_gmt":"2025-10-29T13:08:37","slug":"senate-democrats-investigate-trumps-pardon-of-binance-co-founder-changpeng-zhao","status":"publish","type":"post","link":"https:\/\/wsj-crypto.com\/index.php\/2025\/10\/29\/senate-democrats-investigate-trumps-pardon-of-binance-co-founder-changpeng-zhao\/","title":{"rendered":"Senate Democrats Investigate Trump’s Pardon of Binance Co-Founder Changpeng Zhao"},"content":{"rendered":"

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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 \u201cCZ\u201d Zhao by President Donald Trump.<\/p>\n

In a public communication<\/a> on Tuesday, seven Democratic senators stated that the pardon \u201cindicates to cryptocurrency executives and other corporate criminals that they can engage in unlawful activities without consequences.\u201d The lawmakers accused Trump of fostering criminal behavior \u201cas long as it benefits him financially.\u201d<\/p>\n

This letter follows similar remarks from US Representative Maxine Waters<\/a>, the leading Democrat on the House Financial Services Committee, earlier this week, who remarked that \u201cTrump is rendering significant favors for crypto criminals who have contributed to his wealth.\u201d <\/p>\n

The signatories encompass Senators Elizabeth Warren, Chris Van Hollen, Bernard Sanders, Mazie Hirono, Richard Blumenthal, Jack Reed, and Jeffrey Merkley. They mentioned that \u201cthis pardon will hinder Federal law enforcement\u2019s capacity to combat and prevent crime.\u201d<\/p>\n

Changpeng Zhao. Source: <\/em>Wikimedia<\/em><\/a><\/figcaption><\/figure>\n

Related: <\/strong><\/em>Trump\u2019s second term nurtures a $1B crypto fortune for his family: Report<\/strong><\/em><\/a><\/p>\n

Senators claim connections between Trump and Binance<\/h2>\n

In the communication, the senators emphasize numerous alleged connections between Zhao, Trump, and Binance. Trump\u2019s family established their decentralized finance<\/a> (DeFi) platform World Liberty Financial (WLFI) late last year, which has been associated with Binance\u2019s activities.<\/p>\n

The rollout was succeeded by allegations that Zhao arranged introductions and meetings for WLF leaders, which CZ refuted in late May<\/a>. Additional reports imply Binance played a part in creating the code for USD1<\/a>, the stablecoin released by WLFI.<\/p>\n

\u201cAfter Mr. Zhao\u2019s 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.\u201d<\/p><\/blockquote>\n

Reports from earlier this month also indicated that Zhao\u2019s pardon succeeded a lobbying initiative<\/a> 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 Guill\u00e9n.<\/p>\n

Related: <\/strong><\/em>Crypto executives contribute funds at Trump\u2019s ballroom fundraiser<\/strong><\/em><\/a><\/p>\n

Lawmakers query effects on law enforcement<\/h2>\n

The senators contended that Trump\u2019s pardon might \u201cpublicly and blatantly weaken the efforts of federal law enforcement\u201d and convey a message to \u201ccryptocurrency executives and other corporate criminals that the law is inconsequential.\u201d<\/p>\n

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\u2019s purported financial associations with CZ swayed his decision to grant the pardon.<\/p>\n

Trump pardoned CZ last week, asserting that individuals informed him \u201cwhat he did was not even a violation<\/a>.\u201d 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. <\/p>\n

Magazine: <\/strong><\/em>Trump\u2019s crypto endeavors raise questions about conflicts of interest and insider trading<\/strong><\/em><\/a><\/p>\n