Senate Seeks Clarification Regarding Trump's Alleged 'Pardon for Payment' Cryptocurrency Scandal
- Senate Democrats demand transparency over Trump's pardon of Binance founder Zhao, calling it a corrupt favor to a "white-collar criminal" who funded Trump-linked ventures. - A Coinotag report reveals Binance spent $740,000 lobbying Trump associates before the pardon, including payments to firms tied to Trump Jr. and ex-SEC officials. - Critics argue the pardon risks enabling a "pay-for-pardon" system, with experts warning it sets dangerous precedents for crypto lobbying and regulatory capture. - Binance'
Senate Democrats are demanding transparency regarding President Donald Trump's decision to pardon Changpeng Zhao, the founder of Binance, arguing that the move amounts to a corrupt gesture toward a "white-collar criminal" who directed millions to Trump-related interests. In a
Zhao, also known as CZ, admitted guilt in 2024 to breaching U.S. anti-money laundering regulations and served four months in prison. His pardon, announced on October 22, followed renewed lobbying efforts by Binance during the Trump administration, with $860,000 spent in 2025 alone—adding to over $1 million spent in 2022, according to the report. The senators pointed to intertwined financial connections between Binance and Trump’s crypto initiative,
The political controversy has grown as Trump’s pro-crypto stance faces increased examination. Binance.US recently started offering WLFI tokens, a move Democrats cite as proof of regulatory capture in
Analysts caution that this situation highlights weaknesses in the U.S. pardon system and the sway of financial interests in politics. "This creates a troubling precedent," a federal lobbying expert commented, noting that crypto companies are expected to increase lobbying spending by 25% in 2025 due to ongoing regulatory ambiguity, as noted in the Coinotag report. The senators’ letter calls for clarity on whether Trump’s connections to Binance—including possible earnings from WLFI—played a role in his decision. As the crypto industry faces shifting regulations, the pardon has renewed discussions about oversight, with lawmakers advocating for changes to limit political influence over pardons; these concerns were initially outlined in the Cointelegraph letter.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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