President Donald Trump issued a presidential pardon to Binance founder Changpeng Zhao (CZ) in October 2025, erasing his anti-money laundering conviction. However, Trump told 60 Minutes he does not know the billionaire crypto executive.
The controversial pardon ignited political backlash, as Democratic senators demanded a federal probe into possible conflicts of interest tied to the Trump family’s crypto business dealings.
Trump’s Pardon and Denial Spark Controversy
During a 60 Minutes interview at Mar-a-Lago, Trump defended his decision to pardon CZ. Although the federal conviction was erased, Trump denied any personal connection to CZ and described the prosecution as a “Biden witch hunt.”
“I don’t know who he is. I know he got a four-month sentence or something like that. And I heard it was a Biden witch hunt,” TradFi media reported, citing Trump.
CZ’s 2023 conviction stemmed from Binance’s failure to implement anti-money-laundering controls that US prosecutors said enabled terrorist groups to move funds. He served a four-month prison sentence and paid a $50 million fine, while Binance paid a record $4.3 billion penalty.
The pardon restores CZ’s civil rights and US entry eligibility, though regulatory restrictions still prevent him from holding leadership roles at Binance for several years.
When pressed about potential pay-for-play ties between the pardon and his family’s crypto ventures, Trump said his sons “are in the crypto industry” but “they’re not government officials.”
World Liberty Financial, the Trump-linked firm whose stablecoin Binance helped facilitate, denied any involvement in the decision to grant clemency.
$2 Billion Binance Deal Raises Red Flags
The timing of CZ’s pardon has drawn scrutiny after reports revealed a $2 billion partnership between Binance and World Liberty Financial earlier this year.
According to congressional investigators, Binance supported the launch of the firm’s USD1 stablecoin, attracting major Emirati investment weeks before Trump’s pardon.
Lawmakers noted that Trump had recently endorsed pro-stablecoin legislation, raising concerns about potential conflicts of interest. A US House Committee report cited possible irregularities in USD1’s reserves, foreign funding channels, and insider transactions involving Trump-affiliated entities.
Critics argue the pardon undermines accountability in the digital asset sector and sends “a dangerous message that financial crime can be excused through political influence.”
Lawmakers Demand Federal Probe
Seven Senate Democrats, led by Elizabeth Warren and Bernie Sanders, have called for a federal investigation into the pardon, alleging abuse of executive power. Warren’s Senate Resolution 466 condemns the decision as “a threat to financial integrity and public trust,” though Senate Republicans blocked it.
In response, CZ’s legal team threatened to sue Warren for defamation. Warren’s office defended her remarks, stating that they were based on DOJ findings and protected by the First Amendment as political speech.
NoOnes CEO Ray Youssef told BeInCrypto that Binance had become “an instrument of US power” following its DOJ settlement.
“Binance is not CCP, folks. CZ has aligned himself with Uncle Sam — and the Trump family. That’s who runs Binance now,” Youssef claimed.
He argued that US regulators effectively control the exchange through court-appointed monitors, adding, “That’s why you’re having KYC every two weeks. Uncle Sam runs Binance.”
Congressional committees are preparing subpoenas related to the pardon and the $2 billion Binance–Trump family deal.
The investigation could redefine how political influence intersects with crypto regulation, and determine whether Washington’s growing involvement in digital assets has blurred the line between policy and profit.
