important notes
Lawmakers set a Nov. 4 deadline for the Justice Department and the Treasury Department to explain how the pardon would affect federal law enforcement. World Liberty Financial’s USD 1 stablecoin was issued on Binance Smart Chain, and MGX used USD 1 to invest USD 2 billion in Binance. Ms. Chao is considering a defamation lawsuit against Sen. Warren over her X post about her guilty plea.
On October 28, seven Democratic senators sent an open letter to Attorney General Pam Bondi and Treasury Secretary Scott Bessent questioning President Trump’s October 23 pardon of Binance founder “CZ” Chao Changpeng.
In the letter, senators led by Elizabeth Warren argued that the pardon would weaken federal law enforcement and was influenced by Binance’s financial ties to the Trump family’s cryptocurrency venture, World Liberty Financial. The senators said the pardon “sends a message to crypto executives and other white-collar corporate criminals that the law doesn’t matter.”
The letter asks for answers to four questions by November 4, including whether Trump and Zhao’s business relationship influenced the pardon decision. Other senators who signed the letter are Chris Van Hollen, Bernard Sanders, Maisie Hirono, Richard Blumenthal, Jack Reed, and Jeffrey Merkley.
Suspicion of financial ties
The senators detailed their business connections, including WLFI’s USD1 stablecoin minted on the Binance Smart Chain in March. Emirati company MGX spent $2 billion investing in Binance in May, generating what the letter described as “an annual revenue stream worth tens of millions of dollars” for Trump and his family.
The Trump Organization’s revenue soared 17x in early 2025, with crypto ventures accounting for $802 million in revenue.
political and legal collapse
Congressman Ro Khanna has announced plans to introduce a bill that would ban politicians from trading in cryptocurrencies following his pardon. The bill was originally scheduled to be announced on October 28th, but at the time of writing this has not yet happened. Khanna called the move “blatant corruption” in an interview with MSNBC.
Chao is considering a defamation lawsuit over Warren’s X post in which she pleads guilty to money laundering, according to the New York Post, which reviewed a draft letter from her lawyer. Warren’s post states that CZ “pleaded guilty to criminal charges of money laundering,” which his attorney Teresa Goody Guillen claims is false.
Chao pleaded guilty in 2023 to failing to maintain an effective anti-money laundering program at Binance and served four months in prison before being released in September 2024.
Binance paid more than $4 billion in fines as part of the settlement.
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Disclaimer: Coinspeaker is committed to providing fair and transparent reporting. This article is intended to provide accurate and timely information but should not be taken as financial or investment advice. Market conditions can change rapidly, so we recommend that you verify the information yourself and consult a professional before making any decisions based on this content.
Zoran Spirkovski, Web3 Marketing Strategist and former CMO of DuckDAO, transforms complex cryptographic concepts into compelling stories that drive growth. With a background in cryptocurrency journalism, he excels in developing go-to-market strategies for DeFi, L2, and GameFi projects.
Zoran Spielkovskiy of X
