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Senator Elizabeth Warren on Thursday condemned President Donald Trump’s decision to pardon Binance founder Changpeng Zhao, calling it “corruption in its purest form.” Her comments followed widespread reports that Zhao, known as CZ, sought ties with Trump’s political and business circle in recent months.
According to the Wall Street Journal, Zhao and his associates supported several initiatives connected to the Trump family’s crypto ventures. These efforts have drawn sharp scrutiny from US lawmakers amid growing concerns over political influence within the digital asset industry.
Trump reportedly told advisers that federal prosecutors targeted Zhao unfairly during his 2023 money-laundering case. Insiders claimed Trump viewed the charges as exaggerated and believed the Binance founder did not deserve a felony conviction or prison sentence.
In a post on X, Warren wrote, “CZ pleaded guilty to a criminal money-laundering charge and was sentenced to prison. But then he financed President Trump’s stablecoin and lobbied for a pardon.” She added, “If Congress does not stop this kind of corruption, it owns it.”
Zhao has denied direct involvement in financing Trump’s stablecoin project, USD1, issued by World Liberty Financial—a firm linked to the Trump family. However, Bloomberg reported that Binance provided the underlying smart-contract code for the token’s creation and transfer.
The report noted that USD1 was later used in a $2 billion transaction involving a UAE-based company’s stake purchase in Binance. Zhao dismissed the claims, calling them “another hit piece” and accusing competitors of funding misinformation to damage Binance’s credibility.
Warren, the senior member of the Senate Banking Committee, reiterated that Zhao’s pardon represents “political corruption.” She cited Zhao’s 2023 guilty plea to violating US anti-money laundering laws and his four-month prison sentence as reasons for his accountability.
She also pointed to the timing of the pardon, noting its connection to Trump-family crypto projects and Zhao’s lobbying activities. For Warren, the alignment raised serious questions of influence and fairness in the justice system.
Could the decision mark a shift where political loyalty outweighs accountability in America’s financial governance?
While Warren condemned the move, Zhao and his allies celebrated it. The billionaire expressed deep gratitude toward Trump and vowed to help strengthen America’s leadership in blockchain technology.
In a social media post viewed over 3 million times, Zhao said he would “do everything we can to help make America the Capital of Crypto and advance Web3 worldwide.” His message symbolized a renewed alignment between the Trump administration and the digital-asset sector.
White House Press Secretary Karoline Leavitt described the pardon as “a correction” to what she called the Biden administration’s “war on cryptocurrency.” She argued that the decision reflects a broader effort to restore innovation and fairness in digital-asset regulation.
In 2023, Binance reached a $4.3 billion settlement with the US Department of Justice over compliance failures and breaches of sanctions. Zhao stepped down as CEO after pleading guilty, but Trump’s pardon now clears a path for his potential return to a leadership role.
For Warren, this outcome extends beyond one man’s freedom. She warned that such political and financial entanglements risk undermining the rule of law, setting a dangerous precedent for future corporate influence in US policy.
Senator Elizabeth Warren’s criticism of Trump’s CZ pardon highlights the tension between politics and cryptocurrency regulation. As Binance regains momentum, questions remain about transparency, justice, and how political power may shape the future of the digital asset industry.
Read More: Will Trump Grant Pardon to Binance Founder Changpeng Zhao?
