In a decision that has sparked immediate controversy, President Donald Trump has granted a full pardon to Changpeng Zhao, also known as CZ, the founder of cryptocurrency exchange Binance. Zhao, who served four months in prison after a guilty plea to money-laundering violations, has been a contentious figure, with allegations that his platform facilitated illegal transactions for drug dealers, terrorists, and child sex abusers.
The pardon, announced last week, comes amidst revelations of a recent business agreement between Binance and World Liberty Financial, a crypto venture associated with the Trump family, which is projected to generate substantial revenue for the president's relatives. This connection has led to public outcry and allegations of corruption from various quarters, including prominent figures within the president's own party.
Joe Lonsdale, a billionaire venture capitalist and co-founder of Palantir, expressed his dismay on social media, stating, "I love President Trump; this is possibly the greatest admin of my lifetime—except for these pardons." Lonsdale emphasized the negative implications of the pardon, suggesting it casts a shadow of fraud around the president.
Conservative activist Laura Loomer also voiced her disapproval, questioning the rationale behind pardoning Zhao, a Chinese national with Emirati citizenship, and hinting at undue Islamic influence on the Trump administration. Senator Thom Tillis (R-NC) called the pardon a "bad signal," plainly stating his discomfort with the decision for someone who was convicted and "is not innocent."
The Wall Street Journal reported discussions between representatives of the Trump family and Binance regarding a stake in the company's U.S. operations, though Zhao has publicly denied any connection between the potential deal and his pardon. On social media, Zhao defended himself, stating, "Fact: I have had no discussions of a Binance US deal with ... well, anyone."
President Trump, while admitting he did not know Zhao personally, justified the pardon by stating that Zhao "had a lot of support, and they said that what he did is not even a crime." Trump further claimed that Zhao was "persecuted by the Biden administration."
The pardon has not only drawn criticism from Trump's conservative base but also from multiple Democrats who have raised concerns about corruption. Senator Elizabeth Warren condemned the move, pointing to the sequence of Zhao pleading guilty, then supporting a Trump crypto venture, and finally receiving a pardon. Warren called for Congress to address such corruption in upcoming market structure legislation.
The debate surrounding the pardon is complex, with some supporters of the president arguing that he acted on sound advice from his team, while others, including Trump's critics, argue that it undermines trust in the justice system. "This is a complex situation, but the optics are terrible," Lonsdale noted. The decision is likely to remain a focal point of discussion in political and financial circles, with the president's crypto ventures continuing to attract scrutiny.
