It’s official: Donald Trump has pardoned Binance founder Changpeng Zhao — a move that will enrage the president’s critics, and fuel accusations that his crypto interests are having a direct impact on the White House’s actions.
“CZ” ended up serving almost four months in jail after he and his exchange pleaded guilty to failing to maintain an efficient anti-money laundering program, which enabled criminals to use the platform for illegal means.
As Cryptonews previously explained (in an opinion piece arguing why a CZ pardon shouldn’t happen) these violations “allowed money to flow to terrorists, cybercriminals and child abusers” — aiding human and drug traffickers, as well as militant groups like Hamas as well as countries facing economic sanctions.
While Trump has repeatedly tried to sweep any accusations of a conflict of interest under the carpet, there’s no denying that the president has ties to this billionaire.
Earlier this year, an investment fund in the Middle East announced it was using $2 billion of USD1, a stablecoin launched by Trump’s firm World Liberty Financial, to snap up a stake in Binance.
White House Press Secretary Karoline Leavitt has sought to frame CZ’s pardon as rectifying the heavy-handed tactics used by the Democrats — and claimed the Biden administration had waged a “war on cryptocurrency.” She added:
“In their desire to punish the cryptocurrency industry, the Biden administration pursued Mr Zhao despite no allegations of fraud or identifiable victims.”
But there is a difference between rolling back aggressive regulations that stymied the growth of the crypto industry and forced exchanges to move offshore, and wiping away convictions for serious criminal offences. CZ’s pardon also can’t be compared to the clemency given to Silk Road founder Ross Ulbricht.
Democratic Senator Elizabeth Warren — a vocal critic of the president, and of digital assets more widely — made this point on X, writing:
“CZ pleaded guilty to a criminal money laundering charge and was sentenced to prison. But then he financed President Trump’s stablecoin and lobbied for a pardon. Today, he got it. If Congress does not stop this kind of corruption, it owns it.”
She had previously written repeated letters warning that foreign investments and presidential family business interests may mean that America’s justice system is no longer “operating free from inappropriate political and financial influence.”
Some went further — with Cornell University’s economics professor Eswar Prasad telling The New York Times that the Trump administration was engaged in “brazen flouting of the rule of law.”
“There is little justification for this pardon and highlights how far this administration will go to promote the cryptocurrency industry.”
Journalist Isaac Saul went on to describe Changpeng Zhao as “comically corrupt” — and claimed the billionaire was treated favorably because he had helped boost $TRUMP. Noting how surreal the political climate is in the U.S. right now, he added that this would be “a months-long scandal in any other normal administration.”
Trump has also come in for criticism from members of the crypto community, who worry that the CZ pardon could embolden bad actors. Entrepreneur Nick O’Neill reacted to the news by saying:
“CZ at this point in time can get away with literally anything. This is corruption, as far as I’m concerned, at the highest level … Are you kidding me right now? I am a huge supporter of the crypto industry, and it is absolutely critical that we have a regulatory framework within the United States … Trump’s basically supporting all of his cronies, and saying: ‘Yeah, you can do whatever the f*** you want as long as you help me get rich.’”
CZ wasted little time in sharing an update to his 10 million followers on X.
“Deeply grateful for today’s pardon and to President Trump for upholding America’s commitment to fairness, innovation, and justice. Will do everything we can to help make America the Capital of Crypto and advance Web3 worldwide.”
It’s highly likely that Binance will now attempt to re-enter the U.S. market — and it’s entirely possible that CZ could one day return as CEO.
Over on the crypto markets, news of the pardon has helped BNB become one of the best performers among major altcoins over the past 24 hours — up 6.2% at the time of writing.
“Congratulations CZ” may be trending on X, but for the wider crypto industry, such close alignment with Trump could end up having consequences further down the line.
The post CZ Pardon Sparks Backlash as Trump Accused of Corruption appeared first on Cryptonews.
