An explanation of President Trump’s pardon of Binance co-founder Changpeng Zhao was requested from the US attorney general and the DOJ by seven Senate Democrats, who characterized the action as a corrupt maneuver.
A request has been made by Democratic Party senators to US Attorney General Pam Bondi and the US Department of Justice. They seek more comprehensive details concerning the pardon granted to Binance co-founder Changpeng “CZ” Zhao by President Donald Trump.
In an open communication released on Tuesday, seven Democratic senators composed that the pardon “signals to cryptocurrency executives and other white-collar offenders that crimes can be committed with immunity.” The legislators leveled an accusation at Trump, claiming he was promoting illegal actions “provided that they enrich him.”
This communication comes after comparable critique was voiced by US Representative Maxine Waters, the ranking Democrat on the House Financial Services Committee, earlier this week. She asserted that “massive favors are being done by Trump for crypto criminals who have assisted in enriching him.”
The individuals who endorsed the letter encompass Senators Elizabeth Warren, Chris Van Hollen, Bernard Sanders, Mazie Hirono, Richard Blumenthal, Jack Reed, and Jeffrey Merkley. They penned that, as a result of this pardon, “it will be made more difficult for Federal law enforcement to combat and discourage criminal activity.”
Senators Accuse Trump of Ties to Binance
In the communication, multiple purported connections between Zhao, Trump, and Binance are underscored by the Senators. The decentralized finance (DeFi) platform World Liberty Financial (WLFI), which was initiated by Trump’s family late last year, has been associated with Binance’s activities.
The introduction was succeeded by claims that Zhao arranged introductions and meetings for WLF executives, a charge that was refuted by CZ in late May. Other accounts imply that Binance had a hand in crafting the source code for USD1, the stablecoin released by WLFI.
“After Mr. Zhao’s company provided President Trump and his family with a revenue stream worth millions of dollars, President Trump pardoned him for criminal activity that he admitted to conducting.“
Allegations from earlier this month also put forth that Zhao’s pardon was preceded by a lobbying initiative from Binance. This effort included $450,000 being directed to lobbyists affiliated with Trump, and $290,000 to Teresa Goody Guillén, a former candidate for the Securities and Exchange Commission chair and lawyer for CZ.
Lawmakers Raise Concerns Over Law Enforcement Impact
The senators contended that Trump’s pardon could “publicly and flagrantly undermine the work of federal law enforcement,” and a message would be conveyed to “cryptocurrency executives and other white-collar corporate offenders that the law is inconsequential.”
They sought an explanation from the Department of Justice and Bondi regarding the anticipated impact of the pardon on individuals and entities involved in criminal activity, particularly within the crypto sector. Clarification was also requested concerning whether Trump’s alleged financial links to CZ had any bearing on his choice to grant the pardon.
CZ was pardoned by Trump last week; he asserted that individuals had conveyed to him “what he did was not even a crime.” Zhao had admitted guilt in 2024 to an infraction of the US Bank Secrecy Act by neglecting to sustain an efficient Anti-Money Laundering protocol at Binance.
