Former U.S. President Donald Trump has issued a controversial pardon to Changpeng Zhao, founder of the world’s largest cryptocurrency exchange, Binance, prompting a wave of criticism and ethical concerns.
Zhao, known widely as CZ, served nearly four months in prison after admitting that Binance had failed to uphold an effective anti–money laundering (AML) system. Prosecutors in the case alleged that the company’s lax compliance controls had allowed criminal networks—including child exploitation rings, narcotics traffickers, terrorist organizations, and sanctioned entities—to move illicit funds through the platform.
Trump’s decision to grant clemency has reignited debate over his financial entanglements in the crypto sector. The former president and members of his family are linked to World Liberty Financial, a digital asset venture that recently launched a U.S. dollar–pegged stablecoin known as USD1. Critics argue this overlap raises serious questions about whether the pardon serves public interest or personal gain.
White House Press Secretary Karoline Leavitt dismissed any notion of impropriety, portraying the decision as a response to what she described as the Biden administration’s “war on cryptocurrency.” Leavitt told reporters that all pardon requests undergo “a very thorough examination” before reaching the president’s desk, and claimed Zhao’s case had been “overly prosecuted.”
However, Democratic Senator Elizabeth Warren, a longtime critic of the crypto industry, condemned the move, writing on X (formerly Twitter):
“First, Changpeng Zhao pleaded guilty to a criminal money laundering charge. Then he promoted one of Donald Trump’s crypto ventures and lobbied for a pardon. Today, Donald Trump returned the favor.”
Binance has not publicly addressed Warren’s allegations.
Further complicating the optics, a Middle Eastern investment fund recently announced a $2 billion investment in Binance—paid in the USD1 stablecoin—creating a direct financial link between Zhao’s exchange and Trump’s crypto enterprise. Trump’s most recent financial disclosure shows he earned over $57 million in 2024 from World Liberty Financial alone.
In a social media post, Zhao expressed gratitude for the pardon, thanking Trump for “upholding America’s commitment to fairness, innovation, and justice,” and pledged to help make the U.S. “the Capital of Crypto.”
Trump, responding to reporters’ questions, claimed Zhao’s name had been repeatedly recommended for clemency and insisted, “a lot of people say he wasn’t guilty of anything.” He added that he did not believe he had ever met Zhao personally.
