In a surprising move, President Donald Trump issued a pardon in late October to Changpeng “CZ” Zhao, the founder of the cryptocurrency exchange Binance. This decision has provoked a debate regarding possible connections between political favors and business interests.
The reaction has been mixed, with some lawmakers pushing for investigations, while Zhao’s legal representatives assert that the pardon was entirely appropriate and legally sound.
Connections Between Binance and Political Ventures
Reports indicate that Binance was involved in backing a cryptocurrency initiative associated with Trump’s circle, known as World Liberty Financial, which introduced a stablecoin named USD1.
Recent investigations have mentioned that engineers from Binance contributed to aspects of this project, while a significant investor pledged about $2 billion to the venture, seemingly facilitated by transactions in USD1 tokens.
DL News has reported that CZ’s lawyer Teresa Goody Guillen dismissed any notion of ‘pay-to-play’ involving President Trump’s pardon for Changpeng Zhao, stating on the Pomp Podcast that there was no exchange of favors. She also countered media narratives linking Binance to World Liberty Financial. pic.twitter.com/lLq52dt6fF
— Ashir (@roomchanger2) November 17, 2025
Following a conviction in 2023 on charges related to regulatory lapses in his exchange’s operations, Zhao served four months in prison before receiving the presidential pardon, raising eyebrows about the circumstances surrounding both the conviction and the subsequent clemency.
Clarifications From CZ’s Legal Team
In a recent podcast appearance, CZ’s attorney, Teresa Goody Guillén, strongly rejected rumors linking the pardon to any “pay-to-play” scheme.
During her time on the Pomp Podcast, she characterized the allegations as a collection of inaccuracies and emphasized that no evidence supports claims of exchanges made for financial gain or cryptocurrencies.
Guillén further questioned the narrative that World Liberty Financial was merely an extension of the Trump family’s business interests.
Binance has also defended its position, asserting that decisions related to the USD1 investment stemmed from an investor consortium rather than direct involvement from Binance itself. Company officials have repeatedly denied any negotiations concerning the pardon in exchange for business advantages.
Despite these assertions, calls for increased transparency regarding meetings and potential arrangements associated with the USD1 project continue to grow from various lawmakers.
As public scrutiny intensifies, lawmakers and advocacy groups are advocating for thorough investigations to ascertain whether improper influences or conflicts of interest played a role in the pardon.
Critics highlight the significance of the $2 billion investment deal and point to interactions between business leaders and Trump’s associates, forming strong grounds for seeking further documentation and testimony.
On the other hand, supporters of the pardon argue that the original charges against CZ were narrow in focus, dealing primarily with compliance issues rather than any fraudulent activities.
Featured image from Getty Images, chart from TradingView
