Trump’s Pardon of Binance Founder CZ Sparks Outrage and Calls for Investigation
President Trump’s decision to pardon Binance founder Changpeng Zhao (CZ) has sparked outrage among Senate Democrats, who are now calling for a federal investigation into the matter. The lawmakers argue that the pardon could encourage white-collar crime and weaken the credibility of law enforcement. 
A group of seven Senate Democrats, led by Senator Elizabeth Warren, sent a letter to Attorney General Pam Bondi and Treasury Secretary Scott Bessent on October 28, questioning Trump’s decision to pardon CZ. The lawmakers pointed to CZ’s guilty plea in a high-profile money laundering case involving Binance, which agreed to pay over $4 billion in penalties in 2023. CZ was sentenced to four months in prison for failing to implement adequate anti-money laundering controls as head of Binance.
Concerns Over Conflict of Interest and Erosion of Law Enforcement Integrity
The senators claim that the pardon sets a dangerous precedent and could encourage future white-collar crime, particularly in the crypto sector. They argue that the move could undermine federal agencies like the DOJ, CFTC, and Treasury Department, which have worked for years to hold Binance accountable. The lawmakers also cited concerns over possible conflicts of interest, given Trump’s alleged business dealings with CZ.
According to the letter, Trump’s decision to pardon CZ may have been influenced by financial connections and favors exchanged. The senators pointed to CZ’s ongoing 90 percent ownership stake in Binance, meetings with Trump associates, and Binance’s alleged role in coding the USD1 stablecoin for Trump’s crypto company World Liberty Financial. Trump, who continues to have financial interests in WLFI, founded the company in September 2024 during his presidential campaign and won re-election in November of that year.
Call for Investigation
The senators have asked the DOJ and Treasury Department to answer four key questions by November 4, 2025, including whether the pardon undermines confidence in law enforcement and whether Trump’s ties to CZ played a role in the decision. The lawmakers argue that the investigation is necessary to ensure that the pardon does not compromise the integrity of federal law enforcement and to prevent future white-collar crime.
The latest call builds on previous criticism from Elizabeth and other industry leaders. The senators’ letter is a clear indication that they will not let the matter go uninvestigated. As the situation unfolds, it remains to be seen how the DOJ and Treasury Department will respond to the lawmakers’ requests. For more information, visit https://crypto.news/u-s-senators-call-for-probe-into-trumps-changpeng-zhao-pardon/
