Senate Democrats have opened an inquiry into US President Donald Trump’s pardon of Binance founder Changpeng Zhao (CZ). They cited potential conflicts of interest due to CZ’s financial ties to a Trump-linked World Liberty Financial.
The letter, addressed to the US Attorney General, argued that the pardon could embolden white-collar crime within the crypto industry.
Democrats Urge Investigation Into CZ Pardon
A group of seven Democratic Senators sent a letter on Tuesday to US Attorney General Pam Bondi and Treasury Secretary Scott Bessent requesting a probe into Trump’s controversial pardoning of Binance founder CZ.
They cautioned that the act of clemency could set a troubling precedent.
“The pardon–which signals to cryptocurrency executives and other white-collar criminals that they can commit crimes with impunity, so long as they enrich President Trump enough–seems likely to encourage, rather than discourage, criminal activity,” the letter read.
The senators also highlighted evidence suggesting Trump’s and CZ’s overlapping financial and political interests.
Timeline Suggests Binance Deals Preceded Pardon
In the letter signed by Elizabeth Warren, Chris Van Hollen, Bernie Sanders, Mazie Hirono, Richard Blumenthal, Jack Reed, and Jeff Merkley, the senators cited new evidence regarding Binance’s ties to Trump’s crypto venture, World Liberty Financial (WLFI).
They claimed the company offered favorable deals that may have influenced CZ’s eventual pardon. To support this claim, they included a detailed timeline of related events.
Beginning in late 2024, Binance and CZ developed closer financial ties with Trump and his associates. Around the time Trump and his allies launched WLFI, CZ was released from prison, and Binance began exploring potential collaborations with the new venture.
Meanwhile, reports later emerged that Binance helped develop and promote WLFI’s USD1 stablecoin, which was launched on the Binance Smart Chain.
Recent reports also suggested that MGX, an Emirati firm linked to Middle East envoy Steve Witkoff, invested $2 billion in Binance using USD1. The move reportedly generated substantial revenue for Trump’s company.
Months after these developments, CZ publicly requested a presidential pardon for his money-laundering conviction, which Trump granted last Thursday.
This isn’t the only effort Democrats are taking to condemn Trump’s pardon.
Trump’s Series Of Crypto Pardons
On Monday, Senators Elizabeth Warren and Adam Schiff sent a letter to their Democratic colleagues and staff, inviting them to support a resolution denouncing the President’s decision to grant CZ clemency.
“This week, Senators Warren and Schiff will attempt to pass this resolution by unanimous consent on the Senate floor,” read the letter accessed by BeInCrypto.
The collaboration between Warren, a vocal critic of the crypto industry, and Schiff, who has generally taken a more open stance, reflects growing concern across different wings of the Democratic Party.
Ro Khanna, another Democrat representative with a favorable stance toward crypto, anticipated introducing a resolution this week to stop Trump, his family members, and members of Congress from trading crypto and accepting foreign funds.
CZ’s pardon isn’t the only one causing concern among Democrats.
On Monday, Bitfinex hacker Heather “Razzlekhan” Morgan publicly thanked Trump for granting her an early prison release. Her sentence for money laundering was shortened by approximately one year.
In January, Trump also pardoned infamous Silk Road founder Ross Ulbricht.
