TLDR
- Elizabeth Warren criticized President Trump’s decision to pardon Binance founder Changpeng Zhao, calling it an example of political corruption.
- Warren emphasized that Congress must address such actions to maintain accountability in the political system.
- Reports indicated that Zhao sought closer ties with Trump’s circle, with his associates backing Trump’s crypto ventures.
- Zhao denied involvement in financing Trump’s stablecoin project, but reports claimed Binance helped develop the token’s smart contract.
- The pardon has sparked divided opinions, with critics viewing it as a setback for accountability, while some crypto advocates support it.
Senator Elizabeth Warren sharply criticized President Donald Trump’s decision to pardon Binance founder Changpeng Zhao. Warren called the pardon a clear example of political corruption. She emphasized that Congress must address such actions to maintain accountability in the political system.
Warren’s statement came after reports suggested that Zhao, widely known as CZ, sought closer ties with Trump’s circle. According to the Wall Street Journal, Zhao’s associates had supported initiatives related to the Trump family’s crypto ventures. These efforts have drawn scrutiny from U.S. lawmakers, further fueling controversy around Zhao’s pardon.
In a post on X, Warren wrote, “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.” She continued, “If Congress does not stop this kind of corruption, it owns it.”
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 got 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’s Crypto Project
Zhao, however, denied any direct involvement in Trump’s stablecoin project, USD1. The stablecoin is issued by World Liberty Financial, a company linked to Trump’s family. Despite Zhao’s denials, Bloomberg reported that Binance provided technical code for the token’s smart contract.
The token was later used in a $2 billion transaction when a UAE-based firm purchased a stake in Binance. Zhao rejected these reports, calling them “another hit piece.” He also accused the publication of spreading fear and misinformation within the crypto community.
Zhao’s legal troubles began when he pleaded guilty to failing to implement sufficient anti-money laundering controls at Binance. In 2023, Zhao resolved one of the largest enforcement actions in U.S. crypto history by agreeing to a settlement. Binance paid a $4.3 billion fine, and Zhao personally paid $50 million before stepping down as CEO.
Elizabeth Warren Opposes Zhao Pardon, Calls for Action
The pardon has split opinions across the political spectrum. Elizabeth Warren and several Democratic lawmakers have condemned the decision, calling it a setback for accountability. Warren’s criticism reignited the debate over Zhao’s legal past, with critics arguing that she misrepresented his conviction.
On the other hand, many crypto advocates see the pardon as a turning point. They view the decision as a sign of fairer treatment for the crypto industry. The controversy comes at a critical moment for digital asset regulation in the U.S.
Trump’s administration has pushed for legislation clarifying oversight of exchanges and stablecoins. Meanwhile, Elizabeth Warren continues to advocate for tighter regulations on crypto platforms. The debate over Zhao’s pardon highlights the ongoing clash between crypto advocates and regulators.
