Trump's CZ Pardon Sparks Warren Fury, Crypto Mogul Freed, Senator Cries Corruption

President Trump pardoned Binance founder Changpeng “CZ” Zhao on October 23, 2025, wiping away his Bank Secrecy Act conviction. Senator Elizabeth Warren immediately condemned the pardon as corruption, stating Trump “did his part” after CZ boosted Trump’s crypto ventures and lobbied for clemency. This pardon escalates tensions over cryptocurrency regulation and raises questions about presidential conflicts of interest.

Why Did Trump Pardon CZ?

White House press secretary Karoline Leavitt claimed Trump pardoned Zhao because he was “prosecuted by the Biden Administration in their war on cryptocurrency” and faced “overly harsh” punishment. When asked about the pardon, Trump said “a lot of people” recommended it and claimed many said CZ “wasn’t guilty of anything”.

The pardon followed Binance’s monthslong lobbying campaign. Binance hired lobbyist Charles McDowell in September 2024, paying $450,000 for work that included lobbying the White House for “executive relief”. McDowell is friends with Donald Trump Jr.

What Was CZ Convicted Of?

CZ pleaded guilty in November 2023 to violating the Bank Secrecy Act by failing to implement an effective anti-money laundering program at Binance. Federal prosecutors alleged Binance employees knew they were violating the law, citing internal chat logs.

The charges included:

Willfully failing to maintain an anti-money laundering compliance program
Enabling money to flow to terrorists, cybercriminals, and child abusers through the platform
Processing millions in transactions with sanctioned jurisdictions

CZ was sentenced to four months in prison in April 2024, serving his term before being released in September 2024. He also paid a $50 million personal fine and stepped down as Binance CEO. Binance separately paid a record-breaking $4.3 billion in settlements with the Department of Justice.

CZ was the first person ever sentenced to prison for Bank Secrecy Act violations of this nature.

How Did Elizabeth Warren Respond?

Warren issued a scathing statement minutes after the pardon: “First, Changpeng Zhao pleaded guilty to a criminal money laundering charge. Then he boosted one of Donald Trump’s crypto ventures and lobbied for a pardon. Today, Donald Trump did his part and pardoned him”.

She warned Congress: “If Congress does not stop this kind of corruption in pending market structure legislation, it owns this lawlessness”.

Warren has been fighting Trump’s crypto-friendly policies throughout 2025. In July 2025, she released a framework for crypto market structure legislation focused on five priorities: upholding securities laws, ensuring investor protections, maintaining financial stability, requiring anti-money laundering compliance, and preventing public officials like Trump from profiting off crypto tokens.

Warren opposed the GENIUS Act stablecoin legislation, arguing it fails to address Trump’s crypto corruption and could trigger the next financial meltdown. She noted that Trump and his family have already pocketed hundreds of millions from crypto ventures, and the bill would make it easier for them to profit further.

Trump's CZ Pardon Sparks Warren Fury, Crypto Mogul Freed, Senator Cries Corruption

What Does This Mean for Crypto Regulation?

The pardon signals a dramatic shift in crypto enforcement strategy. Trump has pardoned multiple crypto executives since returning to office, including Ross Ulbricht (Silk Road founder) and three BitMEX co-founders.

The pardon likely provides a path for Binance to expand operations in the United States after years of regulatory scrutiny. Binance hosts the Trump family’s crypto firm and received a $2 billion investment from Abu Dhabi firm MGX using World Liberty Financial’s USD1 stablecoin.

Warren and other Democrats worry this creates a “pay-to-play” system where crypto firms can buy pardons and favorable treatment. Warren pointed out that Trump’s crypto holdings now represent the majority of his wealth, estimated at $7 billion.

Legal Implications of the Pardon

The pardon wipes away CZ’s federal conviction and restores his civil rights. Presidential pardons are an absolute constitutional power with few limitations.

Key legal implications:

CZ can conduct more business in the United States without the stigma of a criminal conviction
Binance may seek to expand U.S. operations, though the company itself was not pardoned
The Justice Department’s crypto enforcement strategy faces uncertainty as future prosecutions may result in pardons
Other crypto executives convicted of similar violations may seek pardons, citing CZ’s case as precedent

Historically, presidents have waited until the end of their terms to issue pardons, but there’s no legal requirement to do so. Trump has issued crypto-related pardons early in his term, signaling his administration’s pro-industry stance.

The Trump Family’s Crypto Connections

The pardon raises conflict-of-interest questions because of the Trump family’s extensive crypto business interests. World Liberty Financial, co-founded by Trump family members, received a $2 billion bank deposit when MGX used its USD1 stablecoin to invest in Binance.

At the time of this deal, Binance was actively lobbying for Zhao’s pardon. When asked about potential corruption, White House spokesperson Karoline Leavitt said the administration has “a very thorough examination of every pardon request”.

Trump’s sons Eric and Donald Jr. have grown the family business with sprawling crypto ventures since Trump returned to office.

Warren’s Legislative Counter-Moves

Warren isn’t backing down. She sent a letter to Treasury Secretary Scott Bessent urging stricter enforcement of the GENIUS Act stablecoin law, warning it could put consumers and the entire financial system at risk.

On the Senate floor, Warren argued the GENIUS Act does nothing to “rein in the president’s crypto corruption” and warned of a financial meltdown if the bill passes without amendments addressing conflicts of interest.

She specifically cited the Abu Dhabi investment firm MGX using Trump’s stablecoin to finance the Binance deal, noting MGX is chaired by the UAE’s intelligence chief and co-owned by a firm with extensive Chinese government ties.

What This Conflict Reveals About Crypto’s Future

The Warren-CZ confrontation exposes the fundamental disagreement over cryptocurrency regulation in America. Trump and crypto advocates argue that Biden-era enforcement was politically motivated and anti-innovation. Warren and Democrats counter that financial crimes deserve punishment regardless of industry.

Warren’s framework demands that crypto companies follow the same rules as traditional financial institutions, while Republicans push for lighter-touch regulation that distinguishes crypto from securities.

The outcome of this clash will determine:

Whether crypto firms face the same anti-money laundering standards as banks
If presidents can pardon financial crimes tied to industries where they have business interests
How the SEC and CFTC divide oversight of digital assets
Whether stablecoin issuers must hold reserves matching bank capital requirements

What Happens Next?

Several developments could emerge from this situation:

For CZ: With his pardon, CZ can conduct more business operations in the U.S. and may return to a leadership role in crypto. He’s forbidden from operating Binance for three years under his original plea deal, but the pardon removes other restrictions.

For Binance: The company faces ongoing compliance monitoring but may seek to expand U.S. operations now that its founder has been pardoned. Binance agreed to allow court-appointed monitors and must respond to government information requests as part of its settlement.

For Warren: She continues pushing amendments to crypto legislation that would prevent presidential corruption and strengthen enforcement. CZ’s attorney has threatened to sue Warren for defamation over her characterization of his conviction, which could escalate the public confrontation.

For Trump: His administration signals continued support for the crypto industry through deregulation and pardons, potentially attracting more industry investment while raising ethics concerns.

FAQs

Did CZ plead guilty to money laundering?

No. CZ pleaded guilty only to violating the Bank Secrecy Act by failing to maintain adequate anti-money laundering controls, not to money laundering itself. Warren’s characterization of the charge as “money laundering” has sparked a potential defamation lawsuit.

How much prison time did CZ serve?

CZ was sentenced to four months in prison and served his full sentence before being released in September 2024. Prosecutors had requested three years, while CZ’s defense asked for probation only.

Does Trump profit from Binance deals?

The Trump family’s World Liberty Financial benefits from deals involving Binance, including the $2 billion MGX investment that used World Liberty’s USD1 stablecoin. The extent of Trump’s personal financial gain from these arrangements remains unclear.

Can Binance operate freely in the U.S. now?

Not necessarily. The pardon applies to CZ personally, not to Binance as a company. Binance still faces compliance monitoring and must follow the terms of its $4.3 billion settlement with the DOJ.

What’s the GENIUS Act that Warren opposes?

The GENIUS Act (Guiding and Establishing Innovation for U.S. Stablecoins) would allow banks and private companies to issue stablecoins with light regulatory oversight. Warren argues it could enable corruption, harm taxpayers, and destabilize the economy.

Will other crypto executives get pardoned?

Trump has already pardoned multiple crypto figures including Ross Ulbricht and three BitMEX co-founders. This pattern suggests he may grant additional pardons to crypto executives convicted during the Biden administration.

What was the Bank Secrecy Act violation?

The Bank Secrecy Act requires financial institutions to implement anti-money laundering programs, know their customers, monitor transactions, and file suspicious activity reports. Prosecutors alleged Binance knowingly failed to implement these controls, allowing illicit funds to flow through its platform.

Disclaimer: This information is for educational purposes only and does not constitute legal advice. Consult an attorney specializing in financial regulation or cryptocurrency law for legal guidance.

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About the Author

Sarah Klein, JD, is a licensed attorney and legal content strategist with over 12 years of experience across civil, criminal, family, and regulatory law. At All About Lawyer, she covers a wide range of legal topics — from high-profile lawsuits and courtroom stories to state traffic laws and everyday legal questions — all with a focus on accuracy, clarity, and public understanding.
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Trump’s CZ Pardon Sparks Warren Fury, Crypto Mogul Freed, Senator Cries Corruption