California Governor Critiques Trump’s Crypto Pardons: "Criminal Cronies" Identified

California Governor Gavin Newsom has heightened his critique of President Donald Trump’s use of presidential pardons, particularly emphasizing those related to cryptocurrencies. This move is part of a broader political discourse encompassing public safety, corruption, and the growing influence of digital assets in U.S. politics.

Key Takeaways

California Governor Gavin Newsom challenges Trump’s presidential pardons, focusing on those related to cryptocurrency.
A new state website tracks what Newsom refers to as Trump’s “top criminal cronies,” contrasting them with California’s crime reduction efforts.
Significant figures mentioned include Changpeng “CZ” Zhao of Binance and Ross Ulbricht of Silk Road.
Newsom highlights reductions in violent crime in California, stating that the state has invested $1.7 billion in public safety since 2019.
Representative Ro Khanna proposes a bill to prevent elected officials from owning cryptocurrencies, addressing potential conflicts of interest connected to pardons.

California Governor Targets Trump’s Crypto Pardons: CZ, Ulbricht Branded ‘Criminal Cronies’

This week, Newsom introduced a state-supported website aimed at tracking what his office deems Trump’s “top criminal cronies,” coupled with newly released data reflecting a decline in crime rates across California's major cities.

Violent Crime Rates Decline in California: Newsom Shadows Trump-Era Pardons

According to statistics shared by the Major Cities Chiefs Association, homicides in California decreased by 18% year-over-year, robberies also fell by 18%, and aggravated assaults dropped by 9%. Every major city in California reporting data indicated a reduction in violent crime, with Oakland and San Francisco showing the steepest declines.

Crime Statistics

In light of this data, Newsom highlighted the website as a stark contrast to state-level efforts aimed at reducing crime and Trump’s track record concerning pardons.

The website catalogues individuals who received clemency from Trump, including those from political backgrounds, organized crime, and the cryptocurrency sector.

Newsom explained that the purpose of the site is to centralize public information, allowing voters to understand who has been granted protection or favor through presidential powers.

Crypto-related pardons are a significant focal point. The site lists Binance founder Changpeng “CZ” Zhao, who pleaded guilty in 2023 to breaching the Bank Secrecy Act due to insufficient anti-money laundering measures at the exchange.

Zhao was sentenced to four months in prison in April 2024 and released later that same year. In October, Trump signed a full pardon, a decision later confirmed by Binance. The White House clarified that the pardon followed a standard review process undertaken by the Department of Justice and the White House Counsel’s Office, with Trump expressing that he did not personally know Zhao.

This pardon incited political backlash, with Democratic Senators, including Elizabeth Warren and Bernie Sanders, alleging Trump was displaying leniency towards white-collar and crypto-related offenses.

The website notably mentions Ross Ulbricht, the Silk Road marketplace founder, who was sentenced to life imprisonment for charges related to narcotics and money-laundering conspiracies involving over $214 million in illegal drug transactions conducted via Bitcoin.

Trump pardoned Ulbricht for his 2015 conviction. Additionally, the website highlights the pardons granted to BitMEX co-founders Arthur Hayes, Benjamin Delo, Gregory Dwyer, and Samuel Reed in March, all of whom had admitted guilt to violations of the Bank Secrecy Act.

Intensifying Debate on Crypto Pardons: Trump Looks to Review Samourai Wallet Case

The discourse has become even more heated this week after Trump expressed a willingness to review the case of Keonne Rodriguez, CEO of the privacy-centric Bitcoin wallet Samourai.

Rodriguez was sentenced last month to five years in federal prison after pleading guilty to money laundering charges linked to a Bitcoin mixing service, which prosecutors claim processed $237 million in illegal funds.

Besides crypto figures, Newsom’s website lists a variety of other prominent pardons, including those of former Illinois Governor Rod Blagojevich, ex-Honduran President Juan Orlando Hernández, and former Congressman George Santos.

It also mentions Trump’s clemency actions for approximately 1,500 individuals associated with the Capitol attack on January 6.

In conjunction with the website's launch, Newsom’s office defended California’s public safety funding decisions, highlighting an investment of $1.7 billion since 2019 directed towards crime prevention, law enforcement staffing, and organized retail theft initiatives.

Officials noted that California’s strategy contrasts with federal reductions in public safety and anti-trafficking programs that occurred during the Trump administration.

In response to these pardons, Representative Ro Khanna from California has proposed legislation aimed at prohibiting elected officials from owning or creating cryptocurrencies, asserting that pardons involving digital asset figures raise conflicts of interest. The proposed bill mandates divestment or the creation of blind trusts for lawmakers holding crypto assets.