Controversy Surrounds CZ's Presidential Pardon Amidst Crypto Industry Scrutiny
In October 2025, President Donald Trump granted a pardon to CZ following CZ's guilty plea in November 2023 for anti-money laundering violations. CZ had served four months in prison, with Binance paying over $4.3 billion in settlements, and CZ personally paying $50 million before his release in September 2024.
Teresa Goody Guillén, CZ's attorney, contested media allegations of pay-to-play, describing them as based on fundamental misunderstandings of blockchain technology and business operations. Guillén explained that the prosecution resulted from the prior administration's crypto crackdown, targeting Binance after the FTX collapse rather than any fraud or victimization.
Claims involving World Liberty Financial's USD1 stablecoin and a $2 billion investment by MGX were described by Guillén as misinterpreted; USD1 operates across multiple chains and exchanges and is not exclusive to Binance or any of Trump's ventures. The media's assertion that Binance built USD1’s underlying technology and promoted it to 275 million users was also contested, with the attorney emphasizing that USD1 is not unique to Binance.
The pardon triggered a political response, with Democratic lawmakers led by Elizabeth Warren sending a letter to Attorney General Pamela Bondi requesting explanations about the pardon and Binance's connections. A group of senators expressed concerns that the pardon could signal impunity for white-collar crypto crimes. Representative Maxine Waters labeled the pardon as appalling, while Representative Ro Khanna announced plans for legislation to ban elected officials from owning or launching cryptocurrencies in response to alleged corruption.
President Trump stated he does not know CZ personally, and the White House maintained that the pardon underwent thorough legal review. CZ expressed gratitude online and denied having directly funded Trump's stablecoin venture.
