Senator Elizabeth Warren has openly criticized former President Donald Trump for pardoning Changpeng Zhao (CZ), the founder of Binance, labeling the decision as a troubling example of political favoritism.
The Massachusetts senator argued that the move undermines accountability and urged Congress to intervene. “If Congress does not stop this kind of corruption, it owns it,” Warren wrote on X, renewing her call for stronger ethics standards in government.
Reports suggest that Zhao had been attempting to build closer connections with Trump’s network in recent months — an effort that included backing initiatives linked to the Trump family’s growing interest in cryptocurrency.
Trump’s Allies Viewed the Case Against CZ as Unjust
According to sources cited by the Wall Street Journal, Trump and several members of his inner circle felt that U.S. prosecutors had overreached in their case against Zhao. They reportedly viewed the legal action as politically motivated and unwarranted for a felony conviction.
In her response, Warren said Zhao had pleaded guilty to a criminal charge related to money laundering violations before receiving Trump’s pardon. She claimed that Zhao had supported Trump’s stablecoin project and used his influence to secure the decision — comments that quickly sparked heated debate across the political spectrum.
CZ Denies Financing Trump’s USD1 Stablecoin
Zhao rejected accusations of funding the USD1 stablecoin, a crypto asset associated with World Liberty Financial, a company tied to the Trump family.
While reports from Bloomberg claimed that Binance contributed code used in USD1’s smart contract, Zhao dismissed the claims as false and “sponsored by competitors.” He said the report aimed to mislead the public and damage Binance’s credibility.
Critics Say Warren Distorted Zhao’s Legal History
Warren’s remarks have reignited debate over the nature of Zhao’s conviction. Legal experts and crypto supporters argued that Warren mischaracterized the case, pointing out that Zhao was found guilty of failing to maintain sufficient anti–money laundering safeguards, not of laundering money himself.
Zhao’s 2023 plea agreement was part of one of the largest enforcement actions in U.S. crypto history. As part of the settlement, Binance paid $4.3 billion in fines, and Zhao personally paid $50 million before resigning as CEO. He later served four months in prison in 2024.
Zhao Expresses Gratitude to Trump, Pledges Support for U.S. Crypto Growth
Following his pardon, Zhao thanked Trump and vowed to contribute to America’s leadership in the global crypto landscape.
“We’ll do everything possible to help make the United States the Capital of Crypto and push Web3 innovation forward,” Zhao stated.
Political Divide Over the Pardon Intensifies
Trump’s decision to pardon CZ has polarized Washington. Warren and several Democrats condemned it as a dangerous precedent that weakens accountability in the financial system.
Meanwhile, crypto advocates have praised the move, arguing that it represents a turning point for fairer treatment of digital asset entrepreneurs.
The debate arrives at a crucial moment for the U.S. crypto regulatory framework. Trump’s team is backing legislation to clarify oversight of exchanges and stablecoins, while Warren continues to push for tighter compliance laws and stronger enforcement against crypto-related misconduct.
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