While much of the attention in Washington this week is focused on the House bill regarding the potential release of the Epstein files, there has also been a fervor of activity around crypto exchange Binance, whose co-founder and former CEO Changpeng “CZ” Zhao was previously pardoned by President Trump.
The business dealings of Trump-affiliated crypto entities that involve Binance have drawn accusations that the pardon was a clear and obvious quid pro quo, where Zhao was able to effectively pay for his release from prison. This is simply one of many potential concerns with Trump affiliates’ crypto profiteering while “The Donald” is in office.
On Monday, a report from the International Consortium of Investigative Journalists (ICIJ) indicated that Binance is still involved with the processing of illicit money, despite the exchange being previously charged with violating the Bank Secrecy Act (BSA) and paying a record fine of more than $4 billion. Zhao’s involvement in the exchange’s relaxed anti-money laundering standards was why the crypto billionaire had found himself in prison in the first place.
“Between the guilty pleas and Zhao’s pardon, Binance continued to profit from hundreds of millions of dollars in cryptocurrency transactions linked to some of the world’s most notorious organized crime groups,” says the ICIJ report.
Yesterday, CZ responded to a question on X regarding a potential refund of the fine payment in light of the pardon, stating, “IF we get any refund, we will be investing that in America anyway, to show our appreciation. Haven’t asked yet, I think.”
Trump and his affiliates have been heavily involved in the crypto industry during his second term as president. Just yesterday, a new tokenization project involving a Trump-branded hotel development was announced. This is on top of the TRUMP memecoin and World Liberty Financial, which is the crypto business at the heart of the corruption accusations related to the Zhao pardon.
On top of the new revelations regarding Binance and other crypto exchanges’ alleged continued involvement with illicit funds, Senators Elizabeth Warren and Jack Reed have taken issue with the involvement of allegedly shady actors in World Liberty Financial’s initial token offering. However, as the pseudonymous crypto scam investigator ZachXBT has pointed out on X, these claims are focused on $10,000 from a $550 million deal. Your mileage may vary on whether that’s significant.
Unprecedented, but Probably Legal, Corruption
According to a 60 Minutes report, President Trump’s recent decision to pardon Zhao has sparked a wave of concern from former Justice Department officials and ethics experts, who say the move bypassed established standards for clemency. Former DOJ pardon chief Elizabeth Oyer called the pardon “unprecedented,” arguing that Zhao fell far short of meeting the department’s criteria and that the financial ties between Zhao’s company and a Trump family venture created a troubling backdrop. “This is absolutely not justice,” Oyer added. “This is corruption.”
Critics warn that this case reflects a growing pattern in which the pardon power, traditionally reserved for advancing justice and the public interest, is instead being used to reward allies and benefactors. Of course, this isn’t necessarily a Trump-only issue, as many controversial pardons have been handed down over the years, including former President Joe Biden’s pardoning of his son Hunter.
While the White House denies any wrongdoing, Binance maintains roughly $2 billion in World Liberty Financial’s stablecoin, USD1, which could yield tens of millions annually for Trump-connected partners. “Any ordinary American would understand why that’s a corrupting relationship.” Harvard Law Professor Lawrence Lessig told 60 Minutes.
That said, while ethically and morally questionable, there is no smoking gun in terms of a direct quid pro quo that could lead to any sort of legal liability for Trump when it comes to his crypto deals, whether it be the pardon for CZ or the dinner that was put together for the top holders of the TRUMP memecoin.
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