Trump's pardon of Binance founder sparks concern over links to family biz

Trump's pardon opened the door for Binance, the world's largest crypto-trading platform, to return to the US market

US President Donald Trump granted a presidential pardon last week to Changpeng Zhao, co-founder and former CEO of Binance. The move has sparked speculation that Trump may have used the powers of his office to benefit someone linked to deals that have financially helped his family, according to a Wall Street Journal report.

 

Trump’s pardon has opened the door for Binance, the world’s largest crypto-trading platform, to return to the US market. The company had been banned after pleading guilty in 2023 to violating anti–money laundering rules. At that time, US authorities said Zhao had caused “significant harm to US national security” by allowing sanctioned Iranian exchanges, Russian drug traffickers, Hamas militants, and other criminal groups to move billions of dollars through Binance.

 

Binance's Zhao pleaded guilty

In 2023, Binance admitted to breaking US money-laundering laws and agreed to pay over $4 billion in fines. Zhao stepped down as CEO and spent a short time in prison. Since then, the exchange has operated mostly outside the US, under strict supervision from the Justice and Treasury departments. However, after Zhao’s pardon, Binance is looking to regain access to the American market -- its most profitable region before the ban. 

What it means for Trump

During Trump’s presidential campaign, Zhao’s team began reaching out to Trump’s allies to explore ways to resolve Binance’s US legal problems, according to the Wall Street Journal. After Trump’s victory, Binance began supporting World Liberty Financial (WLF), a crypto project launched by Trump’s family.

 

With Binance’s help, WLF’s stablecoin, USD1, grew rapidly, from around $127 million to over $2 billion in value. According to the report, Binance engineers helped build the technology behind USD1, while a UAE royal family firm, MGX, invested $2 billion in Binance using that same stablecoin.

 

The deal boosted both Binance and Trump’s crypto venture, earning WLF hundreds of millions in profit. Even Zhao’s personal fortune rose to about $80 billion, and Binance is again expanding globally.

What do Trump critics say?

Trump’s pardon of Zhao has raised concerns that the president used his authority to benefit someone connected to his family’s financial interests.

 

According to the Wall Street Journal, officials at the US Department of Justice were surprised by the pardon and worried about the message it sends regarding money laundering and political favouritism.

 

Several critics accused Trump of abusing presidential power and mixing personal business with national policy, while his supporters argue the move ends the government’s crackdown on crypto.

Not the first time

This is not the first time Trump has faced accusations of using his office to benefit associates or business partners. In September, The New York Times reported that Trump and his Middle East envoy Steve Witkoff had struck two major deals with Sheikh Tahnoon bin Zayed Al Nahyan of the UAE, deals that appeared to benefit Trump and Witkoff personally rather than serving US interests.

 

One of the deals involved Sheikh Tahnoon, who manages about $1.5 trillion in sovereign wealth, investing in World Liberty Financial. In another, the US approved the sale of thousands of advanced computer chips to G42, a UAE tech company controlled by Sheikh Tahnoon, despite ongoing concerns that these chips could eventually reach China.