Senate Seeks Clarification Regarding Trump's Alleged 'Pardon for Payment' Cryptocurrency Scandal

Senate Democrats are demanding transparency regarding President Donald Trump's decision to pardon Changpeng Zhao, the founder of Binance, arguing that the move amounts to a corrupt gesture toward a "white-collar criminal" who directed millions to Trump-related interests. In a

, seven senators—including Elizabeth Warren, Bernie Sanders, and Richard Blumenthal—called on Attorney General Pam Bondi and the Department of Justice to clarify how this pardon might encourage crypto leaders to "break the law without fear, provided they benefit President sufficiently." This request comes after revealed that Binance spent more than $740,000 lobbying Trump allies before the pardon, including $450,000 to Checkmate Government Relations, a firm associated with Trump Jr., and $290,000 to Teresa Goody Guillén, a former SEC chair candidate.

Zhao, also known as CZ, admitted guilt in 2024 to breaching U.S. anti-money laundering regulations and served four months in prison. His pardon, announced on October 22, followed renewed lobbying efforts by Binance during the Trump administration, with $860,000 spent in 2025 alone—adding to over $1 million spent in 2022, according to the report. The senators pointed to intertwined financial connections between Binance and Trump’s crypto initiative,

(WLFI), including claims that Binance contributed to WLFI’s USD1 stablecoin code and enabled a $2 billion investment from a UAE-based company, as detailed in . Trump justified the pardon by saying Zhao was "targeted by the Biden administration" and that his conduct "does not constitute a crime," a stance described in , though critics dismissed this as an excuse for a "pay-for-pardon" arrangement.

The political controversy has grown as Trump’s pro-crypto stance faces increased examination. Binance.US recently started offering WLFI tokens, a move Democrats cite as proof of regulatory capture in

. Representative Maxine Waters, a prominent opponent, described the pardon as a "huge gift to crypto lawbreakers" and accused Trump of rewarding Binance for "channeling billions into his own crypto business," as reported in . Meanwhile, Binance CEO Richard Teng has portrayed the pardon as a positive for the sector, saying Trump’s administration is "firmly backing crypto" and that prospects are "promising," according to .

Analysts caution that this situation highlights weaknesses in the U.S. pardon system and the sway of financial interests in politics. "This creates a troubling precedent," a federal lobbying expert commented, noting that crypto companies are expected to increase lobbying spending by 25% in 2025 due to ongoing regulatory ambiguity, as noted in the Coinotag report. The senators’ letter calls for clarity on whether Trump’s connections to Binance—including possible earnings from WLFI—played a role in his decision. As the crypto industry faces shifting regulations, the pardon has renewed discussions about oversight, with lawmakers advocating for changes to limit political influence over pardons; these concerns were initially outlined in the Cointelegraph letter.