Last month, President Trump issued a pardon for a billionaire convict whose company provided financial assistance to a business linked to the Trump family. The pardon was granted to Changpeng Zhao, a businessman originally from China, who faced accusations from the Justice Department of inflicting significant damage to U.S. national security. Despite the gravity of these allegations, Trump claims he does not know Zhao. Investigative findings reveal that Zhao’s company played a supportive role for a firm associated with the Trump family just prior to the pardon.
### Changpeng Zhao and Binance: A Background
Changpeng Zhao is the founder of Binance, the largest cryptocurrency exchange globally. In 2023, both Zhao and Binance pleaded guilty to charges related to their inability to prevent money laundering on the platform, resulting in a hefty $4 billion fine, alongside a four-month prison sentence for Zhao. Elizabeth Oyer, who previously oversaw pardon applications at the Justice Department, pointed out that Zhao’s actions allowed his company to facilitate illicit financing for terrorist groups, including Al-Qaeda and ISIS. Oyer, who has criticized the Trump administration since her dismissal last spring, indicated that Zhao did not meet the necessary criteria for receiving a pardon.
### Unusual Circumstances Surrounding the Pardon
When asked about the pardon, Oyer described it as highly irregular, suggesting that the financial influence involved in securing it was unprecedented. She criticized the self-serving nature of the pardon, which appeared to benefit not just Zhao but also Trump and his close associates. Oyer firmly stated that this was not a case of justice but rather a clear instance of corruption.
### Trump’s Support for the Crypto Industry
During the 2024 election campaign, Donald Trump expressed strong backing for the cryptocurrency sector. His family and associates also announced plans to launch their own cryptocurrency venture, named World Liberty Financial. The promotional material for this firm emphasized a shift away from traditional banking systems, framing it as a modern financial solution. The initial fundraising efforts for World Liberty were reportedly underwhelming, with limited progress and a small team in place.
### The Role of Binance in World Liberty’s Launch
After his release from prison, Changpeng Zhao became a key figure in helping World Liberty launch its cryptocurrency. Sources indicated that Binance contributed software to assist the Trump family’s initiative, with claims that without Zhao’s involvement, the necessary technology would not have been available. Shortly after Zhao sought a presidential pardon, World Liberty secured a significant investment of $2 billion from an Emirati fund, which was transacted in World Liberty’s cryptocurrency.
### Implications of the Emirati Investment
This transaction propelled World Liberty from an obscure startup to a prominent player in the cryptocurrency market. The Emirati investment came just five weeks after World Liberty’s debut, raising eyebrows about the motivations behind such a large financial commitment. Lawrence Lessig, a legal scholar focused on political ethics, suggested that the deal was designed to curry favor with the president, raising concerns about potential conflicts of interest.
### Concerns Over U.S. Foreign Policy
Lessig expressed concerns about how this kind of transaction alters U.S. foreign policy dynamics. He argued that foreign governments may now view financial contributions as a more effective means of influencing American decision-making compared to traditional diplomatic arguments. This shift poses risks of corruption, as it creates an environment where financial interests intersect with public policy.
### The Financial Stakes for World Liberty
Notably, Zhao’s Binance left the $2 billion investment within World Liberty Financial, which could yield substantial interest, potentially benefiting both Trump and his family significantly. This situation places Zhao in a position of power over World Liberty’s viability, suggesting he has considerable influence over the company’s future.
### The Controversial Nature of the Pardon
President Trump formally signed the pardon for Zhao on October 21, though the announcement was not made public initially. When the news broke, Trump appeared unfamiliar with Zhao, indicating a disconnect. He later stated that many believed Zhao had been wrongfully accused, framing the pardon as a response to widespread support for Zhao.
### Claims of Conflict of Interest
The White House maintained that neither Trump nor his family engaged in any conflicts of interest. Eric Trump, co-founder of World Liberty, asserted that his father had no involvement in the company’s operations. However, experts argue that the financial benefits to the Trump family constitute a clear conflict, regardless of day-to-day involvement.
### Broader Implications of Political Pardons
Both World Liberty and Binance declined to provide interviews regarding this matter. Zhao’s legal representatives stated that they did not offer any resources to World Liberty, although the company acknowledged receiving “freely available” software to expedite their processes. Oyer highlighted a growing trend of using pardons as favors for friends and financial backers in the current political landscape.
### Concerns About the Future of Democracy
Oyer expressed deep concern over the implications of this pattern, suggesting that the pardon power is being exploited in ways that undermine democratic principles. Lawrence Lessig articulated similar fears, emphasizing that the intertwining of vast financial resources in politics has reached unprecedented levels, potentially compromising the integrity of the executive branch.
Changpeng Zhao has not responded to requests for an interview, but in a brief appearance on FOX News, he denied any business relationship with Trump’s sons. Binance continues to manage approximately $2 billion within Trump’s World Liberty Financial, raising ongoing questions about the nature of these connections.
