Democrats Condemn Trump's 'Corrupt' CZ Pardon Amid Crypto Lobby Claims

Democratic lawmakers have voiced strong criticism against President Donald Trump following his controversial decision to pardon former Binance CEO Changpeng “CZ” Zhao. This action has reignited tensions between the White House and Congress over the influence of the cryptocurrency industry in U.S. politics.

In a pointed letter addressed to Attorney General Pamela Bondi and Treasury Secretary Scott Bessent, a group of Democratic senators, including Elizabeth Warren, Bernie Sanders, Chris Van Hollen, Jack Reed, and Mazie Hirono, demanded clarity on how Trump’s pardon could affect future prosecutions related to white-collar and cryptocurrency crimes.

Democrats Blast Trump’s ‘Corrupt’ CZ Pardon — Claim Crypto Lobby Spent Millions

The lawmakers argued that the pardon demonstrates to cryptocurrency executives and other white-collar offenders that they can act without fear of repercussions, as long as they contribute financially to Trump.

Was the CZ Pardon a Just Decision or a Political Favor?

The letter highlighted Zhao’s guilty plea in 2023 for failing to maintain proper anti-money laundering practices at Binance. The company faced over $4.3 billion in fines after federal investigations revealed it facilitated transactions related to sanctioned nations, terrorists, and child exploitation networks. Zhao himself spent four months in prison before being released in mid-2024.

Senators expressed concern that the pardon undermines years of dedicated law enforcement work from the Department of Justice, Treasury Department, and Commodity Futures Trading Commission, which had coordinated the investigation into Binance.

They emphasized, “The pardon publicly and glaringly undermines the efforts of federal law enforcement teams that invested years probing and prosecuting Binance’s infractions.” They demanded responses from Bondi and Bessent by November 4, questioning whether Trump's business ties with Zhao influenced his pardon decision.

The outrage intensified as evidence mounted regarding the close financial connections between the Trump family and Zhao’s network leading up to the pardon.

Controversy Surrounds Trump's Pardon Amid Stablecoin Developments

In 2024, Binance reportedly engaged in talks with World Liberty Financial, a cryptocurrency firm founded by Trump, his sons, and real estate developer Steve Witkoff, about launching a stablecoin. In March 2025, World Liberty Financial announced the introduction of USD1, a token created on Binance Smart Chain. Later, it was revealed that Binance crafted the token’s underlying code and promoted it to its 275 million users.

In May, a firm connected to Witkoff disclosed a $2 billion investment in Binance, reportedly generating tens of millions of revenue for Trump's business interests. Just months later, on October 23, Trump pardoned Zhao.

Senator Warren remarked last week, “This appears to be a clear illustration of political corruption,” accusing Trump of “selling pardons to wealthy allies.” She elaborated in a post on X, stating, “CZ pleaded guilty to criminal violations and served time. Then he financed Trump’s stablecoin and lobbied for a pardon. If Congress does not take action against this corruption, it accepts the blame.”

Similarly, Representative Maxine Waters criticized the pardon, describing it as “an appalling yet unsurprising reflection of Trump’s presidency.” In her statement, she claimed Trump prioritizes “crypto criminals who have contributed to his wealth” while average Americans face rising costs and government shutdowns. "Trump’s pardon of CZ effectively legitimizes the crypto crime he was convicted of,” Waters stated.

Zhao expressed gratitude for the pardon, affirming his commitment to "support U.S. leadership in digital assets" and his desire for "America to become the Cryptocurrency Capital." However, he denied any direct financial involvement with Trump’s stablecoin initiative, labeling media reports as “misinformation” from competitors.

Increased Scrutiny on Crypto's Political Contributions Following CZ Pardon

This controversy comes as scrutiny of cryptocurrency's involvement in U.S. politics escalates. Research from the Center for Political Accountability revealed that crypto companies spent over $134 million during the 2024 election cycle, a thirteenfold increase compared to the last presidential election.

Much of this funding was distributed through Fairshake, a powerful political action committee supported by major players like Coinbase, Ripple, and venture capital firm Andreessen Horowitz, which invested over $40 million supporting pro-crypto candidates.

Moreover, Federal Election Commission filings indicate that Trump’s campaign raised approximately $7.5 million in crypto donations from July to September 2024. Contributions came in Bitcoin, Ether, XRP, and several stablecoins, with major industry figures such as BTC Inc. CEO David Bailey and Ripple’s Chief Legal Officer Stuart Alderoty among the donors.

Democrats warn that such financial ties create a hazardous overlap between political influence and regulatory outcomes. The senators' letter stated, “After Binance and Zhao provided the Trump family with a multi-million-dollar revenue stream, Trump pardoned him. This sends a dangerous message that corporate criminals can violate the law and remain unpunished — as long as they help the President.”

The political ramifications of this issue extend beyond the White House. On Monday, Representative Ro Khanna (D-Calif.) announced intentions to introduce legislation prohibiting elected officials from owning or launching cryptocurrencies.

While Trump’s supporters defend the pardon as a necessary correction to what they claim is prosecutorial overreach, the backlash has fueled demands for stricter ethical standards and greater transparency surrounding political donations from the cryptocurrency industry.

Key Takeaways

Democratic lawmakers are criticizing President Trump for pardoning Changpeng “CZ” Zhao, former CEO of Binance.
The pardon has raised concerns about its implications for future prosecutions related to white-collar and crypto crimes.
Zhao previously pleaded guilty to charges related to money laundering and served prison time.
The interactions betweenTrump’s business ventures and Zhao are under scrutiny, with significant financial ties being highlighted.
This controversy is part of a broader examination of the influence of cryptocurrency in U.S. politics, particularly in the wake of increased political contributions from the industry.