Quick Breakdown
- Seven Democratic senators have asked the DOJ to explain Trump’s pardon of Binance co-founder Changpeng “CZ” Zhao.
- The lawmakers allege links between Trump, Binance, and the Trump family’s DeFi platform, World Liberty Financial.
- They warn the pardon could weaken federal efforts to combat white-collar and crypto-related crimes.
Democratic senators challenge Trump’s pardon of CZ Zha
A group of seven Democratic senators has called on U.S. Attorney General Pam Bondi and the Department of Justice (DOJ) to provide detailed information on President Donald Trump’s recent pardon of Binance co-founder Changpeng “CZ” Zhao.
In an open letter issued Tuesday, the lawmakers condemned the pardon as a “dangerous signal” to cryptocurrency executives and white-collar offenders, suggesting that they can “commit crimes with impunity” under Trump’s leadership. They accused the president of “rewarding criminal activity” that benefits him financially.
Lawmakers highlight alleged Trump–Binance connections
The senators, including Elizabeth Warren, Bernie Sanders, Chris Van Hollen, Mazie Hirono, Richard Blumenthal, Jack Reed, and Jeffrey Merkley, cited several alleged links between Trump, Zhao, and Binance
Their letter pointed to Trump’s family-backed decentralized finance (DeFi) project, World Liberty Financial (WLFI), launched last year, which has been reportedly associated with Binance’s infrastructure. Zhao allegedly helped facilitate introductions for WLFI executives—claims he denied earlier this year.
Reports also indicate that Binance may have contributed to the development of USD1, WLFI’s stablecoin, and that the company spent over $700,000 in lobbying efforts linked to Trump allies before the pardon was granted.
Concerns over impact on law enforcement
The senators warned that Trump’s decision could “undermine federal law enforcement efforts” to regulate and deter financial crimes, particularly within the cryptocurrency industry. They asked the DOJ and Bondi to clarify the implications of the pardon on ongoing investigations and whether Trump’s financial interests influenced his decision.
President Trump defended his action last week, claiming Zhao’s conduct “was not even a crime.” Zhao had previously pleaded guilty in 2024 to violating the U.S. Bank Secrecy Act, admitting Binance’s failure to maintain a proper Anti-Money Laundering (AML) program.
Notably, The mysterious crypto trader who made headlines for shorting Bitcoin and Ethereum just hours before Trump announced steep tariffs on China has reportedly scored another profitable prediction — this time by betting that Trump would pardon Binance founder Changpeng “CZ” Zhao.
If you would like to read more articles like this, visit DeFi Planet and follow us on Twitter, LinkedIn, Facebook, Instagram, and CoinMarketCap Community.
Take control of your crypto portfolio with MARKETS PRO, DeFi Planet’s suite of analytics tools.”
