- Lawmakers question the fairness of CZ’s pardon and seek details about possible links to Trump aligned crypto activity.
- CZ’s attorney rejects claims of special ties to World Liberty Financial and highlights open blockchain asset movement.
- Rising political backlash pushes new calls for rules that block elected officials from owning or launching crypto assets.
Teresa Goody Guillén, the personal attorney for Changpeng Zhao, continues to counter growing claims that the former Binance chief benefited from political influence to secure his presidential pardon.
The criticism increased after reports linked the pardon to World Liberty Financial and other groups connected to former President Donald Trump. The attorney addressed these claims during a recent interview and challenged assumptions driving the controversy.
Guillén argued that Zhao faced charges tied to compliance failures rather than money laundering, which shaped the legal outcome. She also noted that several reports relied on indirect sourcing, which created confusion around the case. The case centered on a regulatory breach, and the attorney maintained that prosecutors applied unusual pressure on Zhao compared to other financial executives with similar violations.
Attorney Counters Allegations Linking Pardon to USD1 Token
Reports tied the pardon to USD1, a token issued by World Liberty Financial on the Binance chain. Critics argued that the token’s presence on Binance and its role in a $2 billion deal involving MGX created a conflict. The attorney rejected those claims and explained that USD1 operates across multiple chains. She added that several exchanges support the token, which weakens suggestions of exclusive arrangements.
Media reports claimed Binance built the token’s underlying technology and promoted it to millions of users. However, the attorney emphasized that open blockchain systems allow multiple entities to list or use the same asset. She noted that the token’s availability did not confirm a special relationship between Zhao and the Trump-affiliated venture.
Democratic Lawmakers Demand Review of the Pardon Process
Democratic lawmakers increased pressure following the pardon and questioned its broader impact on financial enforcement. Senator Elizabeth Warren led a group seeking details from the Justice Department about the decision. They argued that ties between Binance and Trump-connected entities raised concerns about the fairness of the process. Lawmakers warned that the outcome could influence future white-collar cases and weaken enforcement standards.
Several lawmakers, including Bernie Sanders and Chris Van Hollen, demanded clarity on how the pardon may affect ongoing regulatory actions. Representative Maxine Waters and others also criticized the decision and argued that the administration overlooked serious issues within the crypto industry. The backlash intensified when Representative Ro Khanna proposed legislation that would block elected officials from owning or launching digital assets.
White House Defends Decision While Trump Distances Himself
President Trump declined to provide specific details about Zhao despite granting the pardon. He stated that he remained unaware of the former Binance CEO’s background. He also referenced a broader dispute with the previous administration and described the case as politically driven. The White House defended the pardon and said legal teams reviewed the process.
Zhao will not return to Binance due to ongoing restrictions from U.S. agencies, including the DOJ, CFTC, FinCEN, and OFAC. The exchange continues to operate under a Treasury Department monitor and cannot serve U.S. customers under current terms.
