Senate Democrats have launched an investigation into US President Donald Trump’s pardon of Binance founder Chao Changpeng (CZ). They cited a potential conflict of interest due to CZ’s financial ties to Trump-linked World Liberty Financial.
The letter, addressed to the U.S. Attorney General, argued that pardons could encourage white-collar crime within the cryptocurrency industry.
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Democratic Party calls for investigation into CZ pardon
A group of seven Democratic senators sent a letter to Attorney General Pam Bondi and Treasury Secretary Scott Bessent on Tuesday requesting an investigation into President Trump’s controversial pardon of Binance founder CZ.
They warned that the pardon action could set a troubling precedent.
“While this pardon sends a signal to crypto executives and other white-collar criminals that they can commit crimes with impunity as long as they enrich President Trump sufficiently, it appears likely to encourage rather than deter criminal activity,” the letter said.
The senators also highlighted evidence suggesting that Trump and CZ have overlapping financial and political interests.
Timeline suggests Binance deal preceded pardon
In a letter signed by Elizabeth Warren, Chris Van Hollen, Bernie Sanders, Maisie Hirono, Richard Blumenthal, Jack Reed, and Jeff Merkley, the senators cited new evidence of ties between Binance and Trump’s cryptocurrency venture, World Liberty Financial (WLFI).
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They argued that the company offered a favorable deal, which may have influenced CZ’s eventual pardon. A detailed timeline of related events was included to support this claim.
Starting in late 2024, Binance and CZ forged closer financial ties with Trump and his associates. Around the time Trump and his allies launched WLFI, CZ was released from prison and Binance began exploring the possibility of collaborating with the new venture.
Meanwhile, reports later emerged that Binance helped develop and promote WLFI’s USD1 stablecoin, which was launched on Binance Smart Chain.
Recent reports also suggest that MGX, an Emirati company with ties to Middle East envoy Steve Witkoff, invested $2 billion in Binance using $1. The move reportedly generated significant revenue for Trump’s company.
Months after these developments, Mr. CZ publicly requested a presidential pardon for his money laundering conviction, which President Trump granted last Thursday.
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This isn’t the only time Democrats are trying to criticize Trump’s pardons.
President Trump’s Series of Cryptocurrency Pardons
On Monday, Sens. Elizabeth Warren and Adam Schiff sent a letter to their Democratic colleagues and staff urging them to support a resolution condemning the president’s decision to pardon CZ.
“This week, Senators Warren and Schiff will attempt to pass this resolution unanimously on the Senate floor,” the letter, which BeInCrypto accessed, reads.
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The collaboration between Warren, a vocal critic of the cryptocurrency industry, and Schiff, who generally has a more open stance, reflects growing concerns in various wings of the Democratic Party.
Ro Khanna, another Democrat with a crypto-friendly stance, predicted he would introduce a resolution this week that would block President Trump, his family, and members of Congress from trading in cryptocurrencies or accepting foreign funds.
CZ’s pardon is not the only thing causing concern among Democrats.
On Monday, Bitfinex hacker Heather “Razulcan” Morgan publicly thanked President Trump for granting her early release. Her sentence for money laundering was reduced by about a year.
In January, President Trump also pardoned notorious Silk Road founder Ross Ulbricht.
