Disclaimer: Information found on CryptoreNews is those of writers quoted. It does not represent the opinions of CryptoreNews on whether to sell, buy or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk.
CryptoreNews covers fintech, blockchain and Bitcoin bringing you the latest crypto news and analyses on the future of money.
On Thursday, Senator Elizabeth Warren strongly criticized President Donald Trump’s choice to pardon Binance founder Changpeng Zhao, labeling it a case of political corruption that requires Congressional intervention.
Her statements came after reports indicated that Zhao, commonly referred to as CZ, had been seeking closer connections with Trump’s associates in recent months.
The Wall Street Journal reported that Zhao and his team had supported initiatives related to the Trump family’s cryptocurrency endeavors, which attracted the attention of US lawmakers.
Trump’s Inner Circle Considered CZ Case as Weak, Warren Responds
Trump allegedly informed his advisers that he thought prosecutors were unfairly targeting Zhao. Several insiders suggested that Trump perceived the fraud case against Zhao as weak and not warranting a felony charge or prison time.
In a post on X, Warren stated: “CZ pleaded guilty to a criminal money laundering charge and was sentenced to prison. But then he financed President Trump’s stablecoin and lobbied for a pardon.”
“If Congress does not put an end to this type of corruption, it is complicit,” she added.
CZ pleaded guilty to a criminal money laundering charge and was sentenced to prison.
But then he financed President Trump’s stablecoin and lobbied for a pardon.
Today, he received it.
If Congress does not stop this kind of corruption, it owns it. pic.twitter.com/NsWeaJcVeK— Elizabeth Warren (@SenWarren) October 23, 2025
Zhao Denies Involvement in Trump Family’s USD1 Token
Zhao has refuted claims of direct involvement in funding Trump’s stablecoin project, USD1, which is issued by World Liberty Financial, a firm associated with the former president’s family.
However, Bloomberg reported that Binance supplied the technical code for the token’s underlying smart contract, which governed its creation and transfer. The token was subsequently utilized in a $2 billion transaction when a UAE-based company acquired a stake in Binance.
Zhao publicly dismissed the report, describing it as “another hit piece,” and asserted it was “sponsored by a competitor.” He accused the publication of disseminating fear and misinformation within the crypto community.
Related Posts
Warren Accused of Misrepresenting CZ’s Case as Debate Over Trump’s Pardon Intensifies
Warren’s comments reignited discussions regarding Zhao’s legal history. Critics contended that Warren misrepresented his conviction, emphasizing that Zhao pleaded guilty to not implementing adequate anti-money laundering measures rather than committing money laundering himself.
Respectfully, the only corruption here is the corruption of the truth in your words. CZ did not plead guilty to money laundering. Also, he’s the only first-time offender in U.S. history to serve prison time for a single, non-fraud BSA charge.
This pardon addresses an injustice.— Daniel Batten (@DSBatten) October 23, 2025
Zhao’s 2023 plea agreement resolved one of the largest enforcement actions in US cryptocurrency history. He acknowledged that Binance failed to establish adequate know-your-customer and compliance protocols, permitting illicit transactions on the platform.
As part of the settlement, Binance paid a $4.3 billion fine, and Zhao personally paid $50 million before resigning as CEO. He served a four-month prison term in 2024.
CZ Expresses Gratitude to Trump, Commits to Making America the Capital of Crypto
Following the receipt of Trump’s pardon, Zhao expressed his “deep gratitude” and committed that Binance would support US leadership in digital assets.
“We will do everything we can to help make America the Capital of Crypto and advance web3 globally,” he stated.
Deeply grateful for today’s pardon and to President Trump for upholding America’s commitment to fairness, innovation, and justice.
We will do everything we can to help make America the Capital of Crypto and advance web3 globally.
(Still in flight, more posts to come.)…— CZ
BNB (@cz_binance) October 23, 2025
The decision to pardon Zhao has divided political opinions. While Warren and several Democratic lawmakers criticized the action as a regression for accountability, numerous crypto advocates view it as a significant moment for fairer treatment of the industry.
This controversy arises at a crucial juncture for digital asset regulation in the US. Trump’s administration has supported legislation to clarify oversight of exchanges and stablecoins, while Warren continues to advocate for stricter regulations on crypto platforms.
The post Sen. Warren Slams Trump’s CZ Pardon Decision, While Supporters Rally Behind Binance Founder appeared first on Cryptonews.
