Leading Senate Democrats have formally requested detailed information from US Attorney General Pam Bondi and the Department of Justice regarding the recent pardon granted to Binance co-founder Changpeng “CZ” Zhao by former President Donald Trump.
In an open letter released on Tuesday, seven Democratic senators expressed concerns that the pardon could set a troubling precedent. They stated that it may convey to cryptocurrency executives and other white-collar offenders that illicit activities can be conducted without consequences. The senators accused Trump of enabling such behavior as long as it financially benefits him.
The letter follows earlier criticism from US Representative Maxine Waters, the ranking Democrat on the House Financial Services Committee, who accused Trump of providing significant favors to crypto figures who allegedly enriched him.
The senators leading the inquiry include Elizabeth Warren, Chris Van Hollen, Bernie Sanders, Mazie Hirono, Richard Blumenthal, Jack Reed, and Jeff Merkley. They argue that the pardon complicates federal efforts to combat financial crime, especially within the rapidly evolving cryptocurrency sector.
Alleged Connections Between Trump and Binance
The senators’ letter outlines purported links between Zhao, Binance, and Trump’s family. Notably, the Trump family launched a decentralized finance (DeFi) platform called World Liberty Financial (WLFI) late last year. Reports have connected WLFI’s operations with Binance, suggesting collaboration on various fronts.
Following WLFI’s debut, allegations surfaced that Zhao facilitated meetings between Binance executives and WLFI’s leadership; Zhao has denied these claims. Additional reports indicate Binance may have contributed to the development of the code behind USD1, the stablecoin issued by the Trump family’s platform.
The senators highlight that Zhao’s company provided Trump and his relatives with a lucrative revenue source before the pardon was granted for admitted criminal conduct. Earlier this month, media coverage revealed that Binance engaged in a lobbying campaign involving significant payments—$450,000 to lobbyists linked to Trump and nearly $300,000 to Teresa Goody Guillén, a former SEC chair candidate and Zhao’s lawyer.
Impact on Federal Law Enforcement and Legal Accountability
The open letter emphasizes concerns about the pardon undermining federal legal enforcement efforts by implying that cryptocurrency executives and other corporate offenders may evade prosecution. The senators called on the Department of Justice and Attorney General Bondi to clarify how the pardon might affect ongoing and future investigations within the crypto industry.
Additionally, they sought information on whether financial ties between Trump and Zhao influenced the presidential pardon decision.
Background on the Pardon
Trump issued the pardon last week, citing that people had informed him Zhao’s conduct did not amount to a crime. In 2024, Zhao pleaded guilty to violating the US Bank Secrecy Act by failing to implement an effective Anti-Money Laundering program at Binance. This case marked a significant enforcement action against one of the largest cryptocurrency exchanges globally.
The controversy also reignites discussions around conflict of interest concerns linked to Trump’s crypto-related activities, including the WLFI platform and associated ventures.
