Rep. Maxine Waters, the top Democrat on the House Financial Services Committee, has condemned President Donald Trump’s pardon of Binance co-founder Changpeng “CZ” Zhao yesterday.
Waters strongly criticized Trump’s recent move in a Thursday press release, pointing out that the U.S. President chose to do “massive favors for crypto criminals” while paying no effort to reopen the government, which is currently in shutdown. “Trump’s pardon of Binance founder Changpeng Zhao … is an appalling but unsurprising reflection of his presidency: one defined by corruption, self-interest, and loyalty to criminals over working-class American families,” Waters said.
The White House announced the pardon on Thursday, explaining that Zhao was prosecuted by the Biden Administration in its desire to punish the crypto industry, despite there being no “identifiable victims.”
Zhao pled guilty in 2023 to failing to maintain an “effective anti-money laundering program.” He was also fined $50 million, and Binance, the crypto exchange he cofounded, agreed to pay $4.3 billion as part of the settlement. Zhao served four months in prison and was released in September 2024.
Trump told reporters later on Thursday that he does not know Zhao in person, stating that he was “recommended by a lot of people.”
Pay-to-play
Rep. Waters alleged that the pardon was the result of Zhao’s months of lobbying to Trump and his family while he funneled billions into Trump-affiliated crypto company World Liberty Financial. “The pardon was the payoff and a blatant example of the kind of pay-to-play corruption that Trump and his Administration continue to engage in,” wrote Waters, who added that Trump administration’s actions “effectively legitimize” the crypto crime Zhao was convicted of.
The Congresswoman has continuously criticized Trump’s crypto ties as his administration’s efforts to institutionalize crypto advance in the United States. Waters previously said the GENIUS stablecoin act and Clarity crypto bill fail to adequately protect consumers from risks of fraud.
Since the reelection, Trump has pardoned multiple individuals he deemed inappropriately convicted by the Biden administration, including Ross Ulbricht, who created the online black market Silk Road.
Zhao’s pardon has fueled speculation that Trump might expand his influence to free FTX founder Sam Bankman-Fried, who is currently serving a 25-year sentence. Last week, Bankman-Fried wrote in an online post that his 2022 arrest was politically motivated by the Biden administration after he shifted his political donations toward Republicans.
Meanwhile, several X users have also argued that Trump should pardon Tornado Cash developer Roman Storm, who was convicted in the U.S. for charges of conspiracy to operate an unlicensed money-transmitting business for developing the crypto mixing protocol.
© 2025 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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