Overview
- Seven Democratic senators led by Elizabeth Warren sent an Oct. 28 letter to Attorney General Pam Bondi and Treasury Secretary Scott Bessent seeking answers by Nov. 4 on whether President Trump’s Oct. 23 pardon of Changpeng “CZ” Zhao undermines federal enforcement and whether Trump’s ties to Zhao influenced the decision.
- The letter alleges business connections between Binance and the Trump-linked World Liberty Financial, citing Binance Smart Chain minting of the USD1 stablecoin, reporting that Binance wrote basic code for USD1, Binance listings for USD1 and WLFI, and a $2 billion MGX investment in Binance using USD1 that the senators say created a potential revenue stream for the Trump family.
- Popular Information reported that on Tuesday Binance.US enabled trading for USD1 and WLFI, which could financially benefit Trump through WLFI holdings and returns on USD1 reserve assets.
- Through attorney Teresa Goody Guillen, Zhao has demanded that Warren retract an X post stating he pleaded guilty to money laundering, threatening a defamation lawsuit if she does not; an X Community Note clarifies his 2023 plea was to a Bank Secrecy Act violation for failing to maintain an effective anti–money laundering program.
- The pardon removes Zhao’s criminal conviction from his record, but Binance’s more than $4 billion in penalties under the 2023 DOJ settlement and Zhao’s completed four-month prison term and personal fine remain unaffected.