The White House has defended President Donald Trump’s controversial pardon of Binance founder Changpeng Zhao (CZ), dismissing allegations of corruption and conflicts of interest as the crypto executive’s clemency continues to draw scrutiny from lawmakers and critics.
During a press briefing on Tuesday, White House Press Secretary Karoline Leavitt addressed questions surrounding the pardon, emphasizing that the administration takes clemency decisions with “utmost seriousness” and maintains a thorough review process involving the Department of Justice and White House Counsel’s office.
Presidential Pardon Process Under Fire
Leavitt defended Trump’s decision to pardon Zhao, stating that the Binance founder was a victim of the “Biden administration’s war on the cryptocurrency industry.”
She noted that even the judge in Zhao’s case found the Biden administration’s recommended sentencing “egregious and went too far.”
“The president is correcting that wrong and he has officially ended the Biden administration’s war on the cryptocurrency industry,” Leavitt said during the briefing.
She added that Trump focuses on pardoning individuals who were “abused and used by the Biden Department of Justice and were overprosecuted by a weaponized DOJ.“
When pressed about Trump’s relationship with Zhao, Leavitt clarified that the president “does not know him personally” and “does not have a personal relationship with this individual.”
This statement came after Trump himself told CBS’s 60 Minutes on Sunday that he did not know who Zhao is, despite having granted the pardon.
Trump Family Crypto Ties Raise Questions
The pardon has sparked intense scrutiny due to reported connections between Binance and World Liberty Financial, a cryptocurrency venture backed by the Trump family.
Back in March, Binance facilitated a $2 billion purchase of USD1, the stablecoin created by World Liberty Financial, through Abu Dhabi’s state-owned investment firm MGX.
During his 60 Minutes interview, Trump dismissed questions about the deal, saying, “I know nothing about it because I’m too busy.”
When asked about his family’s involvement in crypto, the president insisted his sons are “running a business” independently without government involvement.
Lawmakers Cry Foul Over Alleged Corruption
Senator Elizabeth Warren has been among the most vocal critics, accusing Trump of “blatant corruption” for pardoning Zhao after Binance reportedly boosted the Trump family’s crypto projects.
Senator Chris Murphy also weighed in, calling the White House “a full time, 24/7 corruption machine.“
Zhao pleaded guilty in 2023 to violating anti-money laundering laws by failing to maintain adequate controls at Binance.
He served four months in prison before receiving presidential clemency in October.
The pardon has prompted Representative Ro Khanna to propose legislation banning elected officials from owning or launching cryptocurrencies.
Binance CEO Richard Teng himself has recently rejected corruption claims, telling CNBC that the exchange’s listing of USD1 was a “purely business decision” and that MGX independently chose to use the stablecoin for its transaction.
Teng noted that other major exchanges, including Coinbase, Robinhood, and Kraken, had already listed USD1 before Binance.
Legal Battle Looms as CZ Threatens Defamation Suit
The controversy has escalated into potential legal action, with Zhao threatening to sue Senator Warren for defamation over her criticism of his criminal conviction.
However, Warren’s attorney dismissed the threat in a letter, stating that her comments about Zhao’s guilty plea were “factually accurate and supported by public records.“
As it stands now, the exchange is exploring options to re-enter the U.S. market following the pardon.
The crypto exchange currently operates Binance.US as a separate entity, capturing less than 1% of U.S. Bitcoin volume compared to nearly 40% globally for its international platform.
Source: https://coingape.com/white-house-defends-trump-pardon-binance-cz-corruption-allegations/
