Democrats Criticize Trump’s ‘Corrupt’ CZ Pardon — Assert Crypto Lobby Invested Millions

Democratic legislators are accusing President Donald Trump of engaging in political corruption following his contentious choice to pardon former Binance CEO Changpeng “CZ” Zhao, which has reignited conflicts between the White House and Congress regarding the crypto sector’s influence on U.S. politics.

In a strongly worded letter directed to Attorney General Pamela Bondi and Treasury Secretary Scott Bessent, a coalition of Democratic senators, spearheaded by Elizabeth Warren, Bernie Sanders, Chris Van Hollen, Jack Reed, and Mazie Hirono, sought clarifications on how Trump’s pardon might affect future prosecutions related to white-collar crimes and cryptocurrency.

Source: The Letter

The lawmakers asserted that the action “signals to cryptocurrency executives and other white-collar offenders that they can engage in illegal activities without consequence, provided they sufficiently enrich President Trump.”

Was the CZ Pardon Justice — or a Favor? Lawmakers Seek Clarification

The letter mentioned Zhao’s 2023 guilty plea to federal charges for not maintaining an adequate anti-money-laundering program at Binance.

The firm was mandated to pay over $4.3 billion in penalties after federal investigators determined it had facilitated transactions associated with sanctioned nations, terrorists, and child exploitation networks.

Binance close to breaking free from DOJ oversight as prosecutors negotiate ending $4.3B settlement monitoring requirements.#Binance #DOJhttps://t.co/zaKCdKEG9g

— Cryptonews.com (@cryptonews) September 17, 2025

Zhao himself spent four months in prison before his release in mid-2024.

Senators cautioned that the pardon undermines years of diligent work by the Department of Justice, Treasury Department, and Commodity Futures Trading Commission, which collaborated on the case.

“The pardon publicly and blatantly undermines the efforts of the federal law enforcement teams that dedicated years to investigating and prosecuting Binance’s violations,” the lawmakers stated.

They requested comprehensive responses from Bondi and Bessent by November 4, inquiring whether Trump’s business ties with Zhao influenced his decision.

The outrage follows increasing evidence of significant financial connections between the Trump family and Zhao’s network in the months preceding the pardon.

Sen. Warren, Rep. Waters Criticize Trump’s Pardon of CZ Amid Stablecoin Controversy

Binance reportedly engaged in discussions with World Liberty Financial, a crypto firm established in 2024 by Trump, his sons, and real estate developer Steve Witkoff, regarding the development of a stablecoin.

In March 2025, World Liberty Financial announced the launch of USD1, a token created on Binance Smart Chain. Subsequent reports indicated that Binance had developed the token’s underlying code and promoted it to its 275 million users.

@Binance played a critical role in developing the USD1 stablecoin launched by the Trump family’s World Liberty Financial Inc. #Binance #Trumphttps://t.co/TefR8YIKoQ

— Cryptonews.com (@cryptonews) July 11, 2025

In May, an Emirati company associated with Witkoff announced a $2 billion USD1 investment in Binance, a transaction that reportedly generated tens of millions in potential revenue for Trump’s business interests.

Just months later, on October 23, Trump granted Zhao a presidential pardon.

BREAKING: Trump pardons Binance founder CZ following lobbying efforts, according to WSJ sources familiar with the matter.#Trump #CZ #Binancehttps://t.co/xduQ7XVO3i

— Cryptonews.com (@cryptonews) October 23, 2025

“This seems to be a clear instance of political corruption,” Sen. Warren remarked last week, accusing Trump of “selling pardons to affluent allies.”

In a post on X, she added, “CZ admitted guilt to criminal offenses and served time. Then he financed Trump’s stablecoin and lobbied for a pardon. If Congress does not address this type of corruption, it is complicit.”

Representative Maxine Waters also criticized the decision, labeling it “an appalling but unsurprising reflection of Trump’s presidency.”

Congresswoman Maxine Waters is condemning the Trump Administration’s decision to pardon Changpeng ‘CZ’ Zhao.#MaxineWaters #CZhttps://t.co/Ixb6B6zVXU

— Cryptonews.com (@cryptonews) October 24, 2025

In a statement, she accused Trump of favoring “crypto criminals who have contributed to his wealth” while Americans contend with rising living expenses and a continuing government shutdown.

“Trump’s pardon of CZ effectively legitimizes the crypto offenses for which he was convicted,” Waters stated.

Zhao, in his response, expressed appreciation for the pardon, stating he would “support U.S. leadership in digital assets” and assist in “making America the Capital of Crypto.”

He denied directly financing Trump’s stablecoin initiative, dismissing media reports as “misinformation” from rivals.

Crypto’s Political Spending Under Scrutiny as Trump’s CZ Pardon Provokes Backlash

The controversy arises amid increasing examination of crypto’s involvement in U.S. politics. In March 2025, the Center for Political Accountability discovered that cryptocurrency firms spent over $134 million during the 2024 election cycle, a thirteenfold increase from the previous presidential election.

Crypto firms invested over $134 million into the 2024 U.S. elections, raising concerns over regulatory influence and financial stability.#Crypto #USElections2024https://t.co/ulzZLU9Ybo

— Cryptonews.com (@cryptonews) March 10, 2025

A significant portion of that funding was channeled through Fairshake, a prominent political action committee supported by Coinbase, Ripple, and venture capital firm Andreessen Horowitz, which spent over $40 million backing pro-crypto candidates.

Additionally, Federal Election Commission filings indicate that Trump’s campaign committee raised approximately $7.5 million in crypto donations from July to September 2024.

Donations were made in Bitcoin, Ether, XRP, and various stablecoins. Key industry figures, including BTC Inc. CEO David Bailey, Ripple’s Chief Legal Officer Stuart Alderoty, and BitGo CEO Mike Belshe, were among the contributors.

Kraken contributes $2M to Pro-Trump Crypto PACs, with $1M each pledged to @FreedomFundPAC and @a1stdigital. #Kraken #PAC #Trumphttps://t.co/0lzNOfMz9b

— Cryptonews.com (@cryptonews) September 24, 2025

Democrats contend that such financial connections have created a perilous intersection between political influence and regulatory outcomes.

“After Binance and Zhao provided the Trump family with a multi-million-dollar revenue stream, Trump pardoned him,” the senators’ letter asserted. “It conveys the message that corporate offenders can breach the law and still evade consequences — as long as they assist the President.”

The political repercussions are already extending 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 have defended the pardon as a necessary correction to what they characterize as prosecutorial overreach, the backlash has amplified calls for stricter ethical guidelines and enhanced transparency regarding political contributions from the crypto sector.

The post Democrats Blast Trump’s ‘Corrupt’ CZ Pardon — Claim Crypto Lobby Spent Millions appeared first on Cryptonews.