CZ’s Pardon Questioned: Attorney Claims Media Misinterpreted the Situation

Teresa Goody Guillén, the attorney for Changpeng “CZ” Zhao, is countering increasing allegations of corruption related to the former Binance CEO’s presidential pardon, labeling media narratives about pay-to-play schemes as “false statements” rooted in “fundamental misunderstandings” of blockchain technology and business practices.

The pardon, issued by President Donald Trump in October after CZ’s guilty plea to anti-money laundering infractions, has sparked significant political backlash from Democratic legislators who assert that financial connections between Binance and Trump’s family crypto initiative influenced the decision.

CZ Should Not Have Faced Prosecution, Claims Lawyer

During a recent interview on the Pomp Podcast, Guillén defended the pardon, arguing that CZ experienced unprecedented treatment compared to executives at conventional financial institutions who have faced similar compliance issues.

She highlighted that no other CEO has been prosecuted for these particular violations, even though major banks have encountered comparable or more severe allegations.

“He was pardoned because he never should have been prosecuted in the first place,” Guillén remarked, pointing out that the case involved no fraud, no victims, and no prior criminal record.

She attributed the prosecution to the previous administration’s “war on crypto,” implying that regulators targeted Binance and CZ as prominent examples following the FTX collapse.

The former Binance leader pleaded guilty in November 2023 to not maintaining sufficient anti-money laundering measures.

Binance settled for over $4.3 billion, while CZ personally paid $50 million and served four months in prison before his release in September 2024.

Corruption Allegations Arise From “Fundamental Misunderstandings”

Guillén systematically refuted claims connecting the pardon to business interactions between Binance and World Liberty Financial, a crypto platform associated with Trump’s family.

Critics have cited USD1 (a stablecoin launched by World Liberty Financial on Binance Smart Chain) and a $2 billion investment from Emirati firm MGX settled using the token as indications of quid pro quo arrangements.

The attorney dismissed these associations as misinterpretations of typical 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,” she clarified, likening USD1’s availability on various exchanges to the use of open-source platforms.

Media reports asserting that Binance developed USD1’s underlying technology and promoted it to 275 million users have intensified speculation regarding preferential treatment.

However, Guillén pointed out that USD1 functions across multiple chains and is available on other exchanges, undermining claims of exclusive arrangements that would benefit Trump’s initiative.

Democratic Legislators Call for Investigation Into Pardon Process

Senator Elizabeth Warren spearheaded opposition to the pardon, stating that “the convergence of Mr. Zhao’s pardon application and Binance’s financial entanglements with the President’s family presents urgent concerns regarding the integrity of our justice system.”

She noted that CZ “pleaded guilty to a criminal money laundering charge” prior to financing Trump’s stablecoin and advocating for clemency.

Democratic senators, including @SenWarren, are questioning President Trump’s pardon of Changpeng Zhao, citing lobbying efforts and alleged financial links. #CZ #Trump #pardon #Binancehttps://t.co/QWiopjA4fb

— Cryptonews.com (@cryptonews) October 29, 2025

A coalition of Democratic senators, including Bernie Sanders, Chris Van Hollen, Jack Reed, and Mazie Hirono, sent a letter to Attorney General Pamela Bondi requesting clarification on how the pardon affects future white-collar prosecutions.

They cautioned that the decision “signals to cryptocurrency executives and other white-collar criminals that they can commit crimes with impunity, so long as they enrich President Trump enough.”

Representative Maxine Waters specifically described the pardon as “an appalling but unsurprising reflection of his presidency,” accusing Trump of favoring “crypto criminals who have helped line his pockets” while Americans contend with rising costs during a government shutdown.

In light of the escalating backlash, representative Ro Khanna announced intentions to propose legislation prohibiting elected officials from owning or launching cryptocurrencies in response to what he termed “blatant corruption.“

Trump Claims He Is Unfamiliar With CZ Despite Granting Pardon

President Trump distanced himself from the controversy during a 60 Minutes interview, asserting he does not know who Zhao is despite having granted the pardon.

When questioned about Binance’s $2 billion deal involving his family’s crypto venture, Trump responded that he was “too busy” to be aware of it.

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

White House spokeswoman Karoline Leavitt defended the decision as having been thoroughly reviewed by legal experts, framing it as a correction of “heavy-handed Democratic tactics” against the crypto sector.

Deeply grateful for today’s pardon and to President Trump for upholding America’s commitment to fairness, innovation, and justice.

Will do everything we can to help make America the Capital of Crypto and advance web3 worldwide.
(Still in flight, more posts to come.)…

— CZ BNB (@cz_binance) October 23, 2025

CZ expressed appreciation for the pardon, stating he would “do everything we can to help make America the Capital of Crypto and advance web3 worldwide.”

He refuted claims of directly funding Trump’s stablecoin initiative, dismissing media reports as “misinformation” from rivals.

In the meantime, Binance is already considering strategies to re-enter the US market following the pardon, potentially merging its separate US affiliate into global operations or allowing direct American access to its primary platform.

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