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 encourage white-collar crime and weaken the credibility of law enforcement.
- Senators claim that Trump’s decision may have been influenced by financial ties between CZ and Trump-affiliated World Liberty Financial.
- The DOJ and Treasury Department were asked to respond by November 4, 2025.
A group of seven US Senate Democrats, led by Senator Elizabeth Warren, has called for an investigation into President Donald Trump’s controversial pardon of Binance founder Changpeng Zhao (CZ).
In the letter dated October 28 and addressed to U.S. Attorney General Pam Bondi and Treasury Secretary Scott Bessent, lawmakers expressed concerns about potential conflicts of interest and possible erosion of the integrity of federal law enforcement.
The senators argue that the 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 crime, especially in the crypto sector.
“This pardon will make it more difficult for federal law enforcement agencies to combat 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 countries, including Iran and North Korea. CZ was sentenced to four months in prison for failing to implement adequate anti-money laundering controls while running Binance.
Trump’s alleged business ties with CZ raise suspicion
The senators further alleged that there were financial entanglements between Zhao and Trump. They pointed to Zhao’s continued 90% stake in Binance, meetings with Trump associates, and Binance’s alleged role in encrypting the USD1 stablecoin for Trump’s crypto venture, World Liberty Financial. Trump, who retains financial interests in WLFI, launched the company in September 2024 during his presidential campaign and was re-elected in November that year.
The lawmakers allege that Trump’s decision to pardon Zhao may have been influenced by financial connections and favors exchanged. They warned that this move could undermine federal agencies like the DOJ, CFTC and Treasury, which have worked for years to hold Binance accountable.
The latest call builds on previous criticism from Elizabeth and other industry leaders. For now, the senators have asked the DOJ and Treasury Department to answer four key questions by Nov. 4, 2025, including whether the pardon undermines confidence in law enforcement and whether Trump’s ties to Zhao played a role in the decision.
