Was CZ's Pardon Bought? His Lawyer Responds to Media Claims

In light of recent allegations suggesting corruption surrounding Changpeng "CZ" Zhao’s presidential pardon, his attorney, Teresa Goody Guillén, is firmly refuting claims made by some media outlets. She describes these reports as “false statements” founded on “fundamental misunderstandings” regarding both blockchain technology and standard business practices.

Key Takeaways

Teresa Goody Guillén, CZ's lawyer, refutes allegations of corruption tied to his presidential pardon, calling media reports misleading.
She argues that the prosecution was unjust and asserts that CZ did not engage in fraud or harm anyone.
Democratic lawmakers are expressing strong opposition to the pardon and requesting investigations into its implications.
President Trump denies knowledge of CZ despite granting the pardon and claims the prosecution was politically driven.
CZ aims to enhance his role in advancing cryptocurrency in the U.S. market post-pardon.

Was CZ's Pardon Bought? His Lawyer Says Media Got It Wrong

The pardon, which was issued by President Donald Trump in October following CZ’s guilty plea to anti-money laundering violations, has faced significant criticism from Democratic lawmakers. They argue that financial connections between Binance and Trump’s family crypto venture played a role in this decision.

Lawyer Argues CZ Should Never Have Been Prosecuted

Guillén defended the rationale behind the pardon during an interview on the Pomp Podcast. She asserted that CZ experienced unprecedented legal scrutiny compared to executives of traditional financial institutions who have faced similar compliance issues.

She pointed out that no other CEO has been prosecuted for these specific violations, even though major banks have faced equally or more serious charges.

“He was pardoned because he never should have been prosecuted in the first place,” Guillén emphasized, noting that the case included no fraud, no victims, and no prior criminal accusations.

She attributed the prosecution to what she describes as the previous administration’s “war on crypto,” suggesting that regulators specifically targeted CZ and Binance as prominent examples after the collapse of FTX.

In November 2023, CZ pled guilty to failing to maintain adequate anti-money laundering practices. Binance ultimately paid over $4.3 billion in settlements, and CZ personally incurred a $50 million penalty, in addition to serving four months in prison before his release in September 2024.

Allegations Arising from Fundamental Misinterpretations

Guillén addressed the allegations that relate the pardon to business dealings between Binance and World Liberty Financial, a crypto platform associated with Trump’s family. Critics have highlighted the USD1 stablecoin, launched by World Liberty Financial on the Binance Smart Chain, and a $2 billion investment from Emirati company MGX, which was settled using this stablecoin, as evidence of questionable arrangements.

The lawyer dismissed these claims, stating they stem from misinterpretations of standard blockchain operations.

“Just because I list something on Craigslist, it doesn’t mean that I therefore have some special relationship with the former CEO of Craigslist,” Guillén explained. She compared USD1's availability on multiple platforms to the use of open-source tools.

Media reports have claimed that Binance developed the underlying technology for USD1 and promoted it to an extensive user base of 275 million, spurring speculations of preferential treatment. However, Guillén countered that USD1 is utilized across various chains, and other exchanges support the stablecoin, which disputes any notions of exclusive arrangements favoring Trump’s business initiative.

Democratic Senators Call for Investigation into Pardon Process

Senator Elizabeth Warren has taken a leading role in opposing the pardon, stating that “the convergence of Mr. Zhao’s pardon application and Binance’s financial entanglements with the President’s family raises urgent concerns regarding the integrity of our justice system.”

Warren noted that CZ “pleaded guilty to a criminal money laundering charge” prior to funding Trump's stablecoin and lobbying for commutation.

A coalition of Democratic senators—including Bernie Sanders, Chris Van Hollen, Jack Reed, and Mazie Hirono—sent a letter to Attorney General Pamela Bondi urging clarity on how the pardon could impact future white-collar prosecutions. They expressed concern that this decision “signals to cryptocurrency executives and other white-collar criminals that they can commit crimes with impunity, as long as they financially benefit President Trump.”

Representative Maxine Waters called the pardon “an appalling but unsurprising reflection of his presidency,” accusing Trump of prioritizing “crypto criminals who have helped line his pockets” as ordinary Americans grapple with rising costs during a government shutdown.

As a response to these mounting criticisms, Representative Ro Khanna announced plans to propose legislation that would prohibit elected officials from owning or launching cryptocurrencies, highlighting what he described as “blatant corruption.”

Trump Denies Knowing Who CZ Is Amid the Controversy

President Trump sought to distance himself from the surrounding controversy during a 60 Minutes interview, asserting that he does not know who Zhao is, despite having pardoned him.

When asked about the $2 billion deal involving Binance and his family's crypto venture, Trump claimed to be “too busy” to be informed.

“I know he got a four-month sentence or something like that, and I heard it was a Biden witch hunt,” Trump remarked, characterizing the prosecution as politically motivated.

White House spokeswoman Karoline Leavitt supported the pardon, explaining that it underwent thorough legal review and framing it as a corrective measure against “heavy-handed Democratic tactics” affecting the crypto sector.

CZ expressed his appreciation for the pardon, stating he would “do everything we can to help make America the Capital of Crypto and advance web3 worldwide.” He rejected claims that he had directly funded Trump's stablecoin venture, labeling the media reports as “misinformation” crafted by competitors.

In the meantime, Binance is exploring strategies to re-enter the U.S. market following the pardon, consider merging its U.S. subsidiary with global operations or allowing Americans direct access to its main platform.