Criticism of Trump’s Crypto Pardon
Maxine Waters, a senior Democrat on the US House Financial Services Committee, sharply criticized President Donald Trump for pardoning Changpeng Zhao, founder of Binance. Waters decried the pardon as a significant favor to crypto criminals during a government shutdown, labeling it a symbol of corruption and conflicts of interest.
In a press release on Thursday, Waters described Trump’s decision as shocking yet unsurprising. She accused Trump of prioritizing his interests over the public good. According to Waters, the pardon’s timing demonstrates the White House’s disregard for the rule of law in pursuit of political gains.
The White House defended the pardon, claiming Zhao was a victim of the Biden administration’s punitive crypto policy. Zhao, found guilty of violating anti-money laundering obligations in 2023, paid a $50 million fine and served four months in jail. During the same period, Binance reached a $4.3 billion settlement agreement. Trump stated to reporters that he did not know Zhao personally but had been advised by many people.
Waters, however, alleged that Zhao’s lobbying efforts with Trump and his family were behind the pardon. She claimed Zhao funneled billions into the Trump-linked crypto company World Liberty Financial, describing the pardon as a blatant conflict of interest.
Debate Grows Over Zhao’s Pardon
Trump’s clemency for Zhao is seen as potentially opening a door of hope for others in the crypto sector. Waters argued the pardon legitimizes crypto crimes and encourages illegal activities. She suggested the Trump administration’s pardoning actions conferred political immunity on white-collar criminals like Zhao.
Following Trump’s re-election, his actions are considered retaliatory against cases he criticized under the Biden administration. Last week, Trump also pardoned Ross Ulbricht, founder of Silk Road. Attention is now turning to Sam Bankman-Fried, founder of FTX, sentenced to 25 years in prison, who alleged his 2022 arrest was politically motivated.
In the crypto community, some are calling for the pardon of Tornado Cash developer Roman Storm, accused of developing software facilitating unauthorized money transfers.