TLDR

White House insists CZ pardon followed standard legal procedure.
Democrats question Zhao–Trump financial links after Binance ties.
Warren demands probe into Trump’s “corrupt” CZ pardon decision.
Trump denies knowing Zhao, slams DOJ’s “politicized” prosecution.
CZ pardon reignites fierce partisan clash over crypto regulation.

The White House confirmed that the CZ pardon underwent a standard legal review, defending it against mounting accusations of corruption. Officials said the clemency followed the same process used for every request that reaches the president. Democratic lawmakers, however, are raising questions about potential financial links between Changpeng “CZ” Zhao and Donald Trump’s family business ventures.

Legal Process Followed, Says White House

White House Press Secretary Karoline Leavitt stated that a full legal team reviewed the CZ pardon before it reached President Trump. She emphasized that the Department of Justice and White House Counsel both conducted assessments to ensure fairness. The administration insists it applied the same level of scrutiny as in other pardon cases.

Leavitt added that the Justice Department pursued an “excessive sentence” under the Biden administration. The White House argued that Trump acted to correct what it called a “politicized prosecution.” Officials maintain that Zhao faced disproportionate legal consequences despite cooperating with authorities.

Zhao pleaded guilty in 2023 to failing to enforce anti-money laundering rules at Binance. Prosecutors asked for a three-year sentence, but the judge imposed a four-month term instead. Zhao served his time from April 2024 to September 2024 before receiving the CZ pardon.

Political Fallout Over Financial Ties

Critics, including top Democratic lawmakers, claim the CZ pardon may be linked to Zhao’s alleged support of Trump-related crypto ventures. Reports suggested Zhao and Binance assisted World Liberty Financial, a firm connected to Trump’s family, in developing a stablecoin. Binance CEO Richard Teng denied these allegations, while Zhao also rejected the claims.

Senator Elizabeth Warren called the CZ pardon an act of political corruption and demanded a federal probe. She and other lawmakers sent a letter to the Attorney General and Treasury Secretary seeking transparency. They questioned whether financial connections played a role in Trump’s decision.

Trump dismissed all accusations during his CBS 60 Minutes interview, stating he did not know Zhao personally. He said his involvement in crypto was limited, despite his sons being active in the sector. Trump described the DOJ’s actions as a “witch hunt” led by the Biden administration.

CZ Pardon Reignites Crypto Policy Debate

The CZ pardon has reignited the policy divide on crypto between Republicans and Democrats. Trump claims the decision ends what he calls Biden’s war on the digital asset sector. The administration now portrays the pardon as a move to protect U.S. competitiveness in emerging industries.

Zhao’s legal team is now threatening legal action against Warren over her public remarks. They argue her description of Zhao’s case as “money laundering” is inaccurate and defamatory. Warren’s office responded by citing official court documents to defend her statement.

The CZ pardon also restored Zhao’s rights to engage in financial activities. However, questions remain about his regulatory status and future involvement with Binance. U.S. agencies have not yet commented on whether Zhao will face further limitations.

Trump’s camp continues to draw comparisons to President Biden’s recent pardon controversy. Republican lawmakers claim Biden used an “autopen” to sign pardons without full knowledge of the individuals involved. Trump allies argue this shows a double standard in media coverage of the CZ pardon.

 

The post White House Defends CZ Pardon Amid Accusations of Corruption appeared first on CoinCentral.

---

Filed under: News - @ November 5, 2025 3:32 pm