US Representative Maxine Waters criticized President Donald Trump’s pardon of Binance co-founder Changpeng Zhao as a corrupt favor tied to crypto lobbying and family business interests, highlighting pay-to-play dynamics in the administration.
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Trump pardoned Zhao on Thursday, claiming the actions were not criminal and involved persecution by the prior administration.
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Waters described the pardon as appalling, linking it to Zhao’s guilty plea for money laundering facilitation.
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The controversy ties to Trump’s family crypto ventures, which have generated over $1 billion in profits amid rising wealth.
Discover why Rep. Maxine Waters slammed Trump’s pardon of Binance’s CZ as corruption in crypto. Explore ties to World Liberty Financial and implications for US policy – read key insights now.
What prompted Maxine Waters to criticize Trump’s pardon of Changpeng Zhao?
Maxine Waters’ criticism of Trump’s pardon of Changpeng Zhao stems from her view that it rewards crypto criminals who influenced the president’s family business. As the leading Democrat on the House Financial Services Committee, Waters issued a statement on Thursday condemning the decision as a reflection of ongoing corruption. She highlighted Zhao’s prior guilty plea to charges related to money laundering, arguing the pardon undermines financial integrity in the cryptocurrency sector.
How is World Liberty Financial connected to this controversy?
World Liberty Financial, a decentralized finance platform founded by Trump’s sons and associates, lies at the heart of Waters’ accusations. The company has sold billions in tokens and stablecoins, contributing significantly to the Trump family’s wealth. In June, Trump reported $57.4 million in income from his involvement, with family stakes surging to $5 billion following a recent token unlock. Newer estimates suggest 2025 earnings from the venture could reach $550 million, according to financial disclosures. Waters pointed out that Zhao lobbied Trump and his family while funneling billions into this enterprise, suggesting the pardon was a quid pro quo. Eric Trump, the president’s son, publicly acknowledged that family profits from such crypto activities likely exceed reported figures, adding fuel to claims of conflicts of interest. Experts in financial regulation, including those from the Consumer Financial Protection Bureau, have long warned about the risks of political figures profiting from unregulated sectors like DeFi, where oversight remains limited. A report from the House Financial Services Committee, chaired by Waters during her tenure, previously outlined how such ventures could facilitate illicit activities, echoing Zhao’s case involving suspicious transactions linked to drug dealers and terrorists.
US Representative Maxine Waters strongly criticized US President Donald Trump for his decision to pardon Binance founder and former CEO Changpeng “CZ” Zhao.
Trump pardoned Zhao on Thursday, saying people told him “what he did is not even a crime.” Waters, the top Democrat on the House Committee on Financial Services, hit back later Thursday, claiming in a statement that “Trump is doing massive favors for crypto criminals who have helped line his pockets.”
“Trump’s pardon of Binance founder Changpeng Zhao—who pleaded guilty to enabling money laundering and facilitating suspicious transactions with child abusers, drug dealers, and terrorists—is an appalling but unsurprising reflection of his presidency,” Waters said. Trump said his decision to pardon Zhao followed “a lot of people” telling him CZ wasn’t guilty.
“It wasn’t a crime; he was persecuted by the Biden Administration,” Trump claimed.
Maxine Waters. Source: Wikimedia
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Waters expands on the corruption claims
Waters further elaborated that Zhao spent months lobbying Trump and his family, directing substantial funds toward World Liberty Financial. This, she argued, exemplifies pay-to-play corruption pervasive in the administration. Financial analysts have noted that Trump’s second term has seen his personal wealth balloon, largely through cryptocurrency initiatives. Reports indicate these family-led ventures amassed over $1 billion in pre-tax profits in the past year alone, transforming the Trumps into major players in the digital asset space.
The family’s openness about these gains is evident in public statements. Eric Trump remarked that actual profits might surpass official estimates, underscoring the scale of their involvement. This transparency, while notable, has drawn scrutiny from lawmakers concerned about ethical boundaries in governance.
Crypto execs have been active participants at Trump fundraisers, including a recent ballroom event where significant donations were made. Such interactions raise questions about influence peddling in policy decisions affecting the industry.
World Liberty Financial’s rapid growth
At the core of this narrative is World Liberty Financial, which has flourished under the Trump banner. The DeFi platform’s token sales and stablecoin issuances have attracted billions in investments, positioning it as a key asset in the family’s portfolio. Trump’s June disclosure of $57.4 million in related income highlights his direct stake, while the September token unlock propelled the family’s valuation to $5 billion. By late 2025, projections place this year’s contributions at $550 million, per independent financial audits. The venture’s success mirrors broader trends in cryptocurrency adoption, yet it amplifies debates over conflicts of interest. Regulatory bodies like the Securities and Exchange Commission have historically flagged similar platforms for potential securities violations, though enforcement has varied under different administrations. Trump’s pardon of Zhao, a figure central to Binance’s operations, intensifies these concerns, as Binance itself faced multibillion-dollar fines for anti-money laundering failures. Waters’ statement underscores how such actions could erode public trust in federal oversight of emerging financial technologies.
Frequently Asked Questions
What was the reason given by Trump for pardoning Changpeng Zhao?
Trump stated that he pardoned Changpeng Zhao based on advice from numerous individuals who assured him that Zhao’s actions did not constitute a crime. He further claimed that Zhao had been unfairly targeted by the previous administration, framing the pardon as a correction of political persecution in the cryptocurrency regulatory landscape.
Why does Maxine Waters view the pardon as corrupt?
According to Maxine Waters, the pardon represents corruption because Zhao lobbied the Trump family extensively while investing billions in their crypto venture, World Liberty Financial. This created a direct incentive for favoritism, exemplifying pay-to-play practices that undermine ethical governance in financial policy.
Key Takeaways
- Political influence in crypto: The pardon highlights growing intersections between politics and cryptocurrency, with lobbying potentially swaying executive decisions.
- Family business profits: Trump family ventures like World Liberty Financial have yielded over $1 billion, raising ethical questions about wealth accumulation during office.
- Regulatory implications: Critics urge stronger oversight to prevent pardons from shielding industry figures involved in money laundering violations.
Conclusion
The clash between Representative Maxine Waters and President Trump over the pardon of Changpeng Zhao illuminates persistent tensions surrounding cryptocurrency regulation and political ethics. With World Liberty Financial’s explosive growth tied to family interests, Waters’ accusations of corruption resonate amid reports of billion-dollar profits. As the crypto sector evolves, stakeholders must prioritize transparency to safeguard integrity; investors and policymakers alike should monitor upcoming legislative efforts to address these dynamics.
