Trump Distances Himself from Binance Founder After Pardoning Controversy
President Trump is trying to separate himself from Chao Changpeng, the founder of Binance, following backlash over his decision to grant a pardon to Zhao. Notably, Zhao’s company has ties to the Trump family’s digital financial operations.
This situation has sparked renewed scrutiny regarding Trump’s family’s financial engagements in the cryptocurrency sector. It also brings to light Trump’s earlier assertions that then-President Biden was unaware of his pardoning decisions at the end of his administration.
In a recent interview on “60 Minutes,” Trump faced questions about his family’s connections to Binance and if they hinted at corruption, asserting that he didn’t know Zhao personally. When correspondent Norah O’Donnell asked why he pardoned Zhao, Trump responded, “Okay, are you ready? I don’t know who he is.” He noted that Zhao had “four months in prison or something like that.” Trump’s comments leaned towards framing the situation as a “Biden witch hunt.”
He elaborated, “This man was treated very badly by the Biden administration. He is well-respected and very successful. They sent him to prison and really got him down. That’s how I see it. I was informed about it.”
Democrats leapt on Trump’s comments, expressing concern over the implications of his pardon, especially given his months-long questioning of Biden’s pardoning authority. House Republicans, meanwhile, requested an investigation into Biden’s pardon last week.
A former Biden press secretary, Andrew Bates, remarked on social media, “Who is running the @WhiteHouse?” regarding Trump’s statements about the pardons.
Trump criticized Biden for allegedly using an autopen to issue pardons, suggesting that Biden lacked real control or understanding of the situation. He further stated in the Sunday interview that his predecessor “had no clue.”
Trump claimed Biden “illegally used a machine called an autopen to grant pardons,” distinguishing Biden’s pardons by stating, “The only pardon he signed was for his son Hunter… But some believe those other pardons were justified, though a waste of time.”
When confronted about the contrast of his remarks, House Speaker Mike Johnson (R-La.) noted he hadn’t seen Trump’s comments, while House Oversight Chairman James Comer (R-Ky.) downplayed the importance of Trump’s statements.
Comer said, “I think he knew. But if he says he didn’t know, I’d have to look and see what he said.” Biden, on the other hand, maintains he fully controlled the pardons made during his term and indeed used an autopen to manage the volume of orders he signed. Trump seems to have given Zhao’s pardon a more personal touch, having physically signed it based on documents from the Justice Ministry.
Criticism from Democrats regarding Zhao’s pardon intensified, viewed as a blatant act of corruption. Senator Adam Schiff (D-Calif.) condemned Trump’s action, stating it exemplified how the president utilized his pardoning power to reward wealthy donors and associates.
The White House defended Trump’s pardons, arguing he acted within his constitutional rights. Spokeswoman Caroline Levitt stated that Zhao was prosecuted by the Biden administration related to the “virtual currency war.” Levitt also highlighted that the current administration seeks harsher consequences for Zhao than what sentencing guidelines suggest.
The allegations of corruption also relate to a $2 billion dealings between the Emirati investment firm MGX and Binance, involving a stablecoin from Trump’s financial venture, World Liberty Financial.
World Liberty Financial was launched by Trump and his sons last fall as the cryptocurrency landscape became part of his campaign narrative for the 2024 election. Eric Trump and Donald Trump Jr. remain actively engaged in the venture. Trump mentioned, “My sons are much more involved in cryptocurrency than I am. I know very little about it.”
When pressed about his prior knowledge of Zhao, Trump added, “Nora, I can tell you this: My sons are into it. They’re happy. Because crypto is probably a great industry.”
Levitt dismissed any conflict of interest, labeling the claims “irresponsible,” assuring that neither Trump nor his family would ever be involved in such situations. She reiterated the administration’s commitment to positioning America as the global leader in crypto innovation.
The deal with Binance drew attention as Zhao had sought a pardon, particularly as he had previously pleaded guilty to failing to maintain effective anti-money laundering protocols, leading to his four-month prison sentence. Binance didn’t help its cause by agreeing to a $4.3 billion settlement with the Department of Justice over accusations of inadequate anti-money laundering frameworks.
Senator Elizabeth Warren (D-Mass.) pointed out the contrast between the hardships faced by American families and Trump’s focus on pardoning a convicted billionaire linked to his family’s financial interests.
This situation even met resistance from within Trump’s circle, with venture capitalist Joe Lonsdale suggesting poor advisory on Trump’s part and activist Laura Loomer criticizing the pardon decisions as misguided.
Following Zhao’s pardon, Binance announced it would list World Liberty Financial’s USD1 stablecoin, further fueling corruption suspicions. Senator Chris Murphy (D-Conn.) remarked on social media about the timing, branding the White House as a “full-time, 24/7 corruption machine.”
Binance responded to allegations, stating that it is unfortunate that standard business decisions are politicized, while World Liberty Financial denied any connection to Zhao’s pardon, calling the claims “outrageous and completely false.”
World Liberty Financial emphasized its status as a significant player in the crypto market, contending it includes many cryptocurrencies alongside its offerings.
