Legal Team Portrays Pardon as Protective Measure Amid 'Crypto Crackdown'

The legal representatives for Changpeng "CZ" Zhao have

that his presidential pardon from former U.S. President Donald Trump was the result of any "pay-to-play" scheme, stressing that the pardon process followed established protocols and underwent regulatory examination. Zhao's lawyer, Teresa Goody Guillén, explained that the Justice Department, White House Counsel, and the Office of the Pardon Attorney all participated in a thorough review prior to the pardon . She denied any connection between Zhao and Trump’s cryptocurrency initiatives, such as the USD-1 stablecoin and , describing these allegations as "an accumulation of numerous falsehoods" .

Zhao, who established Binance, was

after completing a four-month sentence for breaches of anti-money laundering (AML) laws. Guillén maintained that Zhao’s situation was a matter of regulatory compliance rather than a criminal offense, emphasizing that he was not found guilty of money laundering or fraud. "There was no money laundering. This was a compliance matter," she clarified, pointing out that executives in conventional finance often face similar infractions without facing criminal charges . She characterized the pardon as a response to what she called a wider "war on crypto" .

Opponents, including Democratic Senator Elizabeth Warren, have

, arguing that Zhao’s business interactions with Trump’s family enterprise, World Liberty Financial, presented conflicts of interest. The Trump family’s 38% ownership in World Liberty, together with Binance’s listing of USD-1, has led to speculation about possible reciprocal arrangements. Guillén, however, rejected these suspicions, noting that any payments would be visible on the blockchain and insisting that Zhao’s interests never overlapped with Trump’s business dealings.

Trump has attempted to distance himself from the issue, stating he does not know Zhao and labeling the legal action as a "Biden witch hunt." The White House has defended the pardon as a standard use of presidential powers, referencing legal assessments to support the decision. At the same time, constitutional experts and former Justice Department officials, such as Elizabeth Oyer, have voiced concerns, calling the pardon "unprecedented" due to its apparent financial influence and self-interest.

This controversy has renewed discussions about reforming the presidential pardon system, with some legislators advocating for congressional oversight to curb potential misuse. As Binance considers returning to the U.S. market, the situation highlights the increasing examination of crypto leaders and their political associations in a sector still facing regulatory ambiguity.