President Trump’s decision to pardon Binance founder CZ is sparking outrage with Senate Democrats now demanding a federal probe into what they call a “dangerous act of political favoritism.”
Summary
- A group of seven Senate Democrats, led by Elizabeth Warren, sent a letter to Attorney General Pam Bondi and Treasury Secretary Scott Bessent on Oct 28.
- The lawmakers questioned Trump’s pardon of CZ, warning it could embolden white-collar crime and weaken law enforcement’s credibility.
- Senators allege Trump’s decision may have been influenced by financial ties between CZ and Trump-linked World Liberty Financial.
- The DOJ and Treasury were asked to respond by November 4, 2025.
A group of seven U.S. Senate Democrats, led by Senator Elizabeth Warren, has called for an investigation into President Donald Trump’s controversial pardon of Binance founder Changpeng Zhao (CZ).
In the letter dated Oct. 28 and addressed to U.S. Attorney General Pam Bondi and Treasury Secretary Scott Bessent, the lawmakers raised concerns over possible conflicts of interest and potential erosion of federal law enforcement integrity.
The Senators argues that the pardon granted despite Zhao’s guilty plea in a high-profile money laundering case involving Binance sets a dangerous precedent and could embolden future white-collar crimes, especially in the crypto sector.
“This pardon will make it harder for Federal law enforcement to fight and deter crime,” they stated.
The letter also cited the 2023 settlement in which Binance agreed to pay over $4 billion in penalties after CZ pled guilty to federal charges. The company had facilitated illegal transactions tied to terrorist organizations and sanctioned nations, including Iran and North Korea. CZ was sentenced to four months in prison for failing to implement adequate anti-money laundering controls while heading Binance.
Trump’s alleged business ties with CZ raise suspicion
The senators further alleged financial entanglements between Zhao and Trump. They pointed to Zhao’s continued 90% stake in Binance, meetings with Trump associates, and Binance’s alleged role in coding the USD1 stablecoin for Trump’s crypto venture, World Liberty Financial. Trump, who retains financial interests in WLFI, launched the company in September 2024 during his presidential campaign and won re-election in November of that year.
The lawmakers argue that Trump’s decision to pardon Zhao may have been influenced by financial connections and favors exchanged. They warned the move could undermine federal agencies like the DOJ, CFTC, and Treasury that worked for years to hold Binance accountable.
The latest call out builds on earlier criticism by Elizabeth and other industry leaders. For now, the senators have asked the DOJ and Treasury to respond to four key questions by November 4, 2025, including whether the pardon undermines trust in law enforcement and whether Trump’s ties to Zhao played a role in the decision.
