In a surprising turn of events, US President Donald Trump granted a pardon to Changpeng “CZ” Zhao, the CEO of Binance, in late October 2025. This announcement has reignited debates concerning the potential connections between political favors and business dealings in the crypto sphere.
Opinions have sharply divided; while some lawmakers are rallying for investigations, Zhao’s attorney emphasizes that the pardon was issued lawfully and without any negotiation.
Binance’s Controversial Ties to Trump Ventures
Reports indicate that Binance may have been involved in backing World Liberty Financial, a crypto venture associated with the Trump family, which was working on launching a new stablecoin named USD1. Binance engineers are said to have collaborated on aspects of this endeavor, with significant investments totaling around $2 billion reportedly being arranged in USD1 tokens.
In response to these allegations, Zhao’s lawyer, Teresa Goody Guillén, vehemently denied any insinuation of a “pay-to-play” agreement during an appearance on the Pomp Podcast. She underscored that there was no transactional exchange related to the pardon.
“DL News reports that CZ’s lawyer Teresa Goody Guillen denied any ‘pay-to-play’ arrangement behind President Trump’s October pardon of Changpeng Zhao, telling the Pomp Podcast there was no deal.”
— Ashir (@roomchanger2) November 17, 2025
Critics have drawn particular attention to Zhao’s prior legal troubles, referring to his 2023 conviction for failing to halt illegal activities on the Binance exchange, which resulted in a four-month incarceration. The timing of the pardon has led many to argue for deeper investigations into potential conflicts of interest amidst his connections with Trump-linked businesses.
Legal Assertions and Legislative Fallout
Guillén’s efforts to clarify the situation continued during her podcast discussion, where she labeled the allegations against her client as a collection of misinformation. She dismissed claims that World Liberty Financial is merely an extension of the Trump family’s interests.
Despite Binance’s firm denial of negotiating the pardon in exchange for business collaboration, several politicians are demanding comprehensive investigations into the matter. They highlight the $2 billion investment and previous meetings between Binance executives and Trump affiliates as legitimate grounds for scrutiny.
While critics call for transparency about potential inappropriate influences involved in the pardon, advocates argue that the legal basis for the initial charges against Zhao was relatively narrow and focused solely on compliance failures, devoid of any fraudulent activities.
As the political landscape continues to shift, the implications of this pardon on Binance and the broader cryptocurrency sector remain to be seen. Investors and industry stakeholders will be keeping a close eye on the evolving narrative surrounding this high-profile case.
Featured image from Getty Images, chart from TradingView
