While most of the attention in Washington this week has focused on the House bill regarding the potential release of the Epstein files, there has also been a flurry of activity around crypto exchange Binance, whose co-founder and former CEO Changpeng “CZ” Zhao previously sorry By President Trump.
Trump-affiliated crypto entities, including Binance, have alleged that the pardon was a clear and obvious quid pro quo, where Zhao was effectively able to pay for his release from prison. it’s just a Trump’s allies have several potential concerns about crypto profiteering while “The Donald” is in office,
on monday a report The International Consortium of Investigative Journalists (ICIJ) indicated that Binance is still involved in the processing of illicit funds, despite being the first exchange. Was accused Violating the Bank Secrecy Act (BSA) and paying a record fine of over $4 billion. It was because of Zhao’s involvement in relaxing the exchange’s anti-money laundering standards that the crypto billionaire first found himself in jail.
“Amidst the guilty pleas and Zhao’s pardon, Binance continued to profit hundreds of millions of dollars in cryptocurrency transactions linked to some of the world’s most notorious organized crime groups,” the ICIJ report said.
Yesterday, CZ responded to a question on X regarding a possible refund of penalty payments in light of the amnesty, he said“If we get a refund, we will invest it in the US to show our appreciation. I guess we haven’t asked yet.”
Trump and his allies have been heavily involved in the crypto industry during his second term as president. Just yesterday, there was a new tokenization project tied to a Trump-branded hotel development announcedThis is on top of Trump Memecoin and World Liberty Financial, the crypto business at the center of corruption allegations related to the Zhao pardon,
On top of new revelations regarding Binance and other crypto exchanges’ alleged involvement with illicit funds, Senators Elizabeth Warren and Jack Reed have said raised the issue With the alleged involvement of shady actors in World Liberty Financial’s initial token offering. However, As pseudonymous crypto scam investigator ZachXBT reported onThe claims center on $10,000 from the $550 million deal. Your mileage may vary on whether this is important or not.
Unprecedented, but possibly legal, corruption
according to a 60 minutes reportPresident Trump’s recent decision to pardon Zhao has sparked a wave of concern among former Justice Department officials and ethics experts, who say the move bypasses established standards for pardons. Former DOJ pardon chief Elizabeth Oyer called the pardon “unprecedented”, arguing that Zhao fell far short of meeting the department’s criteria and that the financial ties between Zhao’s company and the Trump family enterprise created a troubling backdrop. “This is not justice at all,” Iyer said. “This is corruption.”
Critics warn that the case reflects a growing pattern in which the pardon power, traditionally reserved for pursuing justice and the public interest, is being used to reward associates and beneficiaries. Of course, this isn’t necessarily just a Trump issue, as there have been a number of controversial pardons over the years, including Former President Joe Biden pardoning his son Hunter,
While the White House denies any wrongdoing, Binance holds about $2 billion in World Liberty Financial’s stablecoin, USD1, which could generate millions of dollars annually for Trump-linked partners. “Any ordinary American will understand why this is a corrupt relationship.” Harvard Law Professor Lawrence Lessig told 60 minutes,
That said, while morally and ethically questionable, there is no smoking gun in terms of direct retaliation that could lead to any kind of legal liability for Trump when it comes to his crypto deals, whether it be the pardon for CZ or the dinner that was put together for the top holders of the Trump Memecoin.