Trump-Binance Connection Sparks Claims of Corruption – Here’s What You Need to Know

Binance Trump

President Donald Trump recently pardoned Changpeng Zhao, the founder of Binance, reigniting an ongoing debate about political influence in the cryptocurrency space. This action has raised eyebrows regarding fairness in regulatory practices and the involvement of political figures in digital finance.

Key Takeaways

Trump’s pardon for Zhao (CZ) and the recent listing of USD1 by Binance U.S. have raised concerns about political influence and regulatory integrity.
The pardon restored Zhao's business rights, enabling his possible return to leadership at Binance.
Allegations of behind-the-scenes negotiations between Zhao and Trump’s family have surfaced, alongside public criticism regarding the pardon.

President Donald Trump's ties to the cryptocurrency world have resurfaced after he issued a pardon to Changpeng Zhao, commonly known as CZ, the founder of Binance [BNB]. According to a report from the Wall Street Journal (WSJ), Zhao's representatives reportedly approached Trump about obtaining a pardon. The report stated, "Once Trump won, Binance created a high-level task force to negotiate a deal with the Trumps’ emerging cryptocurrency venture, World Liberty Financial, which could lead to clemency for Zhao."

World Liberty Financial [WLFI], a decentralized finance (DeFi) project backed by the Trump family, has gained attention for its rapidly growing stablecoin, USD1. The WSJ reported that Binance played a key role in helping WLFI develop the USD1 and also persuaded an Emirati investor to acquire a $2 billion stake in the platform, using USD1 as the payment method. In total, the Trump-supported DeFi project generated $1.4 billion in revenue in 2024, driven partly by the popularity of USD1 and sales of its native token, WLFI.

Differing Views on Zhao’s Pardon

Contrarily, WLFI has denied any involvement in securing CZ’s pardon. In a statement to WSJ, the company’s attorney, Tom Clare, asserted, “World Liberty has never assisted in, facilitated, or influenced a decision regarding Mr. Zhao’s presidential pardon.” Nonetheless, critics have dismissed the pardon as a “pay-to-play” arrangement. The swift move to list USD1 on Binance U.S. soon after the pardon has led to accusations of corruption. Senator Chris Murphy vehemently condemned the decision, calling the White House a “full-time, 24/7 corruption machine.”

Trump Binance Source: X

Senator Elizabeth Warren echoed similar sentiments. She labeled Zhao a criminal who pleaded guilty to a “money laundering charge,” suggesting the pardon occurred after he “financed” Trump's stablecoin. However, Zhao clarified that he pleaded guilty to failures in maintaining an anti-money laundering program—not to money laundering itself—and has threatened to sue Warren for defamation.

Diverse Reactions from Crypto Leaders

In contrast, several prominent figures in the cryptocurrency community have come forward in support of Zhao's pardon. David Bailey, for instance, described it as “justice served,” arguing that the charges against Zhao were unfairly punitive. Zhao had previously pleaded guilty to anti-money laundering violations in 2023 and was sentenced to four months in prison, alongside a $50 million fine for himself and $4.3 billion in penalties paid by Binance.

As a result of his felony conviction, he faced restrictions on business activities in the U.S. and was prohibited from holding leadership roles. However, with the presidential pardon, Zhao has had his civil and business rights fully restored, allowing him the opportunity to reclaim his position as CEO of Binance if he chooses.