Crypto Reporter
Shalini Nagarajan
Crypto Reporter
Shalini Nagarajan
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Sen. Elizabeth Warren on Thursday sharply criticized President Donald Trump’s decision to pardon Binance founder Changpeng Zhao, calling it an example of political corruption that Congress must address.
Her comments followed reports that Zhao, known widely as CZ, had sought closer ties with Trump’s circle in recent months.
According to the Wall Street Journal, Zhao and his associates had backed initiatives related to the Trump family’s crypto ventures, which drew scrutiny from US lawmakers.
Trump’s Inner Circle Viewed CZ Case as Weak, Warren Fires Back
Trump reportedly told advisers he believed prosecutors targeted Zhao unfairly. Several insiders claimed that Trump viewed the fraud case against Zhao as weak and undeserving of a felony charge or prison sentence.
In a post on X, Warren wrote: “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.”
“If Congress does not stop this kind of corruption, it owns it,” she added.
Zhao Rejects Claims of Involvement in Trump Family’s USD1 Token
Zhao has denied direct involvement in financing Trump’s stablecoin project, USD1, which is issued by World Liberty Financial, a company linked to the former president’s family.
However, Bloomberg reported that Binance provided technical code for the token’s underlying smart contract, which governed its creation and transfer. The token was later used in a $2b transaction when a UAE-based firm purchased a stake in Binance.
Zhao publicly rejected the report, calling it “another hit piece,” and claimed it was “sponsored by a competitor.” He accused the publication of spreading fear and misinformation in the crypto community.
Warren Accused of Misrepresenting CZ’s Case as Debate Over Trump’s Pardon Deepens
Warren’s remarks reignited debate over Zhao’s legal past. Critics argued that Warren misrepresented his conviction, noting that Zhao pleaded guilty to failing to implement adequate anti-money laundering controls rather than committing money laundering himself.
Zhao’s 2023 plea deal resolved one of the largest enforcement actions in US crypto history. He admitted that Binance did not establish sufficient know-your-customer and compliance procedures, allowing illicit transactions on the exchange.
As part of the settlement, Binance paid a $4.3b fine, and Zhao personally paid $50m before stepping down as CEO. He served a four-month prison sentence in 2024.
CZ Thanks Trump, Vows to Help Make America the Capital of Crypto
After receiving Trump’s pardon, Zhao said he was “deeply grateful” and pledged that Binance would support US leadership in digital assets.
“Will do everything we can to help make America the Capital of Crypto and advance web3 worldwide,” he said.
The decision to pardon Zhao has split political opinion. While Warren and several Democratic lawmakers condemned the move as a setback for accountability, many crypto advocates see it as a turning point for fairer treatment of the industry.
The controversy arrives at a pivotal moment for digital asset regulation in the US. Trump’s administration has backed legislation to clarify oversight of exchanges and stablecoins, while Warren continues to push for tighter restrictions on crypto platforms.
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