President Donald Trump has publicly stated that he does not know Changpeng Zhao, the founder of Binance, despite having pardoned him recently. This statement has raised eyebrows due to Zhao’s connections with the Trump family’s own cryptocurrency venture, World Liberty Financial.
Background of the Pardon
Changpeng Zhao, often referred to as CZ, was pardoned by Trump approximately ten days ago following his guilty plea to charges of money laundering earlier in 2023. As part of a settlement with the U.S. Justice Department, Zhao resigned as CEO of Binance and served four months in prison. The settlement included a substantial $4.3 billion agreement.
Trump’s Recent Interview
In a CBS News interview with Norah O’Donnell, Trump was questioned about the rationale behind pardoning Zhao, especially considering allegations that Zhao’s actions had harmed U.S. national security. Trump dismissed the inquiries, claiming he was unaware of Zhao’s involvement and insisting the case was a politically motivated “witch hunt” by the Biden administration.
Connections to World Liberty Financial
- World Liberty Financial, owned significantly by the Trump family through a parent company, has benefited from Zhao’s initiatives.
- The cryptocurrency company’s valuation surged from $127 million to over $2.1 billion earlier this year, partly due to Binance facilitating a $2 billion investment from MGX, an Emirati state-backed fund.
Despite soaring values, World Liberty Financial stated that there was no involvement from Binance in securing Zhao’s pardon, with claims that the company did not influence the decision at all. Trump’s family and legal representatives have denied any conflicts of interest.
Reactions to the Pardon
The decision to pardon Zhao has faced criticism from various political figures. Democratic Senator Elizabeth Warren accused Trump of corruption and raised concerns about the implications of this pardon for regulatory legislation. Representative Jerry Nadler described the act as a “shameful abuse of power.”
- Supporters of Trump, including software entrepreneur Joe Lonsdale, expressed their opposition to the pardon. Lonsdale criticized Trump’s judgment, suggesting that it fosters an appearance of considerable fraud.
In conclusion, the overlap between Trump’s family business interests and Zhao’s pardoning raises significant ethical questions. As Zhao prepares for a potential return to U.S. markets, the ramifications of this decision continue to unfold.
