The Trump administration's unexpected pardon of Binance founder CZ in October immediately sent shockwaves through Washington and the global blockchain community. On October 3rd, in an interview with CBS's "60 Minutes," Trump was again asked about his motives. He replied that he "didn't know this person," but insisted that the move would maintain America's competitiveness in digital assets. The issue is complex, spanning politics, the legal system, and finance, and has quickly become a multi-front battleground within just a few weeks.
The claim that Trump was pardoned despite the person's "lack of knowledge" has only added to the confusion.
According to a CBS interview , Trump maintained the same statement when pressed by the host:
"I don't know this person at all. I don't think I've ever seen him...maybe I have, but you know, there are often people who shake my hand and stuff, but I don't think I've ever seen him, I don't know who he is. I was told he was a victim (of the legal system), just like me, and like many others."
Trump also defended his family members, stating that he was focused on maintaining America's leading position in the cryptocurrency industry and that his son's late-night activities were unrelated to government policy.
My sons are interested in this, and I'm glad they have this idea, but they're running a business, not working in the government.
Trump further emphasized that the Biden administration's "war on crypto" was detrimental to the industry. This statement, which suggested "they don't know the people, but they have to do the job," made the motives for the pardon even more ambiguous.
CZ was previously imprisoned but was granted a pardon, which cleared personal and company restrictions.
In 2023, CZ pleaded guilty to violating the Bank Secrecy Act and was sentenced to four months in prison and fined $50 million for failing to establish a robust anti-money laundering mechanism. Binance also paid a $4.3 billion settlement. After the amnesty, Zhao's criminal record was erased, his citizenship was restored, and the biggest legal shadow over Binance's operations in the United States temporarily dissipated.
The White House stated that amnesty could "retain talent" and prevent the outflow of capital and innovation. This embrace of crypto contrasts with the Biden administration's stance, leading some market participants to anticipate a potential shift towards a more lenient regulatory approach.
The "pay-as-a-service" approach raises questions about Congress and the legal team's confrontation.
The criticism did not subside with the pardon. Democratic Senator Elizabeth Warren questioned whether the incident involved "pay-for-play." She cited previous investigations indicating potential collusion between Binance and the Trump family's crypto projects and Middle Eastern investments.
Warren Buffett claimed that CZ"admitted to criminal money laundering." Zhao's legal team immediately sent a letter demanding the retraction of his statements and threatening legal action, emphasizing that Zhao's involvement involved regulatory violations rather than intentional money laundering. Warren Buffett, however, refused to back down, citing freedom of speech, and the two sides have entered into a legal battle.
Trump's pardon of CZ is a straightforward political signal: when the crypto industry is intertwined with national competitive interests, legal boundaries, financial flows, and electoral considerations will overlap at the same negotiating table. How this event concludes will be a crucial indicator of whether the United States can balance the rule of law and innovation.
