President Trump’s decision to pardon Binance founder CZ is sparking outrage, with Senate Democrats now demanding a federal investigation 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 October 28.
- Lawmakers questioned Trump’s pardon of CZ, warning that it could embolden white-collar crime and weaken the credibility of law enforcement.
- The senators allege that Trump’s decision may have been influenced by financial ties between CZ and Trump-linked World Liberty Financial.
- The Justice Department and Treasury were asked to respond by November 4, 2025.
A group of seven US Senate Democrats, led by Senator Elizabeth Warren, have called for an investigation into President Donald Trump’s controversial pardon of Binance founder Changpeng Zhao (CZ).
In it letter Dated Oct. 28 and addressed to U.S. Attorney General Pam Bondi and Treasury Secretary Scott Bessent, lawmakers expressed concerns about potential conflicts of interest and a possible erosion of the integrity of federal law enforcement.
The senators maintain that pardon granted despite Zhao’s guilty plea in a high-profile money laundering case involving Binance sets a dangerous precedent and could encourage future white-collar crimes, especially in the cryptocurrency sector.
“This pardon will make it more difficult for federal authorities to fight and deter crime,” they stated.
The letter also cited the 2023 settlement in which Binance agreed to pay more than $4 billion in fines after CZ pleaded guilty to federal charges. The company had facilitated illegal transactions linked 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 he ran Binance.
Trump’s alleged business ties with CZ raise suspicions
The senators also alleged financial problems 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 1 dollar stablecoin for Trump’s crypto company, 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.
Lawmakers argue that Trump’s decision to pardon Zhao may have been influenced by financial connections and exchanged favors. They warned that the move could undermine federal agencies like the DOJ, CFTC and Treasury that worked for years to hold Binance accountable.
The latest call builds on previous criticism from Elizabeth and other industry leaders. For now, senators have asked the Justice Department and Treasury to answer four key questions by Nov. 4, 2025, including whether the pardon undermines trust in law enforcement and whether Trump’s ties to Zhao played a role in the decision.
