Democratic senators are urging US Attorney General Pam Bondi and the Department of Justice to provide more information about President Donald Trump’s pardon of Binance co-founder Changpeng “CZ” Zhao.
In a public letter sent on Tuesday, seven Democratic senators stated that the pardon “sends a message to cryptocurrency executives and white-collar criminals that they can act without fear of consequences.” They accused Trump of promoting criminal behavior “as long as it benefits him financially.”
This letter follows earlier remarks from US Representative Maxine Waters, the leading Democrat on the House Financial Services Committee, who claimed that “Trump is providing significant benefits to crypto criminals who have enriched him.”
The senators include Elizabeth Warren, Chris Van Hollen, Bernard Sanders, Mazie Hirono, Richard Blumenthal, Jack Reed, and Jeffrey Merkley. They asserted that “this pardon will hinder Federal law enforcement’s efforts to combat and prevent criminal activity.”
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Senators allege connections between Trump and Binance
The senators outlined several alleged relationships between Zhao, Trump, and Binance in their letter. Trump’s family launched a decentralized finance (DeFi) platform, World Liberty Financial (WLFI), late last year, which has been linked to Binance’s activities.
This launch was followed by claims that Zhao facilitated introductions and meetings for WLFI leaders, which he denied in late May. Other reports suggest that Binance was involved in developing the code for USD1, WLFI’s stablecoin.
“After Mr. Zhao’s company provided President Trump and his family with millions in revenue, President Trump pardoned him for confirmed criminal actions.”
Earlier this month, reports indicated that Zhao’s pardon came after lobbying efforts by Binance, which included $450,000 to Trump-affiliated lobbyists and $290,000 to attorney Teresa Goody Guillén, who previously sought the position of SEC chair.
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Lawmakers raise concerns about law enforcement
The senators contended that Trump’s pardon might “openly undermine the efforts of federal law enforcement” and convey the message to “cryptocurrency executives and other corporate criminals that the law is insignificant.”
They requested that the Department of Justice and Bondi clarify the anticipated impact of the pardon on individuals and companies involved in criminal activities, particularly in the crypto sector. They also asked for clarification regarding whether Trump’s financial ties to CZ affected his decision to grant the pardon.
Trump pardoned CZ last week, asserting that people informed him “what he did was not even a crime.” Zhao had previously pleaded guilty in 2024 to violating the US Bank Secrecy Act by failing to maintain a proper Anti-Money Laundering program at Binance.
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