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- Zhao’s lawyer rejected claims that he paid for his presidential pardon.
- Binance’s links with the Trump family continue to draw political scrutiny.
- The case revived debate over crypto rules and political influence.
According to the report, a lawyer for Changpeng Zhao firmly denied that the Binance founder paid to secure his October pardon. The lawyer appeared on a podcast and addressed claims that suggested financial influence shaped the decision.
“The reports were full of conjecture and misinformation,” she said. “Blockchain records keep track of any big movement of crypto, leaving no leeway to make anonymous transactions.” The news led to interest because there were allegations about a connection to Zhao’s increased closeness to the Trump family.
They highlighted Binance’s recent ties to crypto initiatives that are backed by President Trump and members within his family. Anti-Trump groups have utilized these to raise new questions about political influences within the crypto market.
Zhao Serves Sentence for Binance Violations
This criticism increased after he finished serving a four-month sentence in 2024. This is because he pleaded guilty to disobeying the Bank Secrecy Act while he worked as the CEO of Binance, which is the largest crypto exchange globally. This involved taking responsibility for serious compliance breaches and paying a $50 Million fine.
Binance has also paid more than 4 billion dollars after pleading guilty to charges similar to those faced by Gemini. Binance also partnered with a crypto business tied to the Trump family after the elections. Documents indicated that the Trump family’s business previously dominated the company’s majority share and currently owns billions of its tokens.
Moreover, Binance assisted in implementing the smart contract for the company’s stable coin, which fueled more talk about it. The company’s founder disputed allegations that he was more involved and advised journalists not to spread misinformation.
Another area of contention emerged with the announcement by MGX, which is UAE-backed, about making a huge investment into Binance. This raised suspicion about political gain. The attorney brushed off this issue and equated it to usual business transactions across the globe.
Warren Calls for Limits on Crypto Political Ties
Senator Elizabeth Warren has raised concerns that this case could lead to controls being imposed on political connections within the crypto industry. This is because political connections can pose a risk to financial regulation.
Zhao has responded to these criticisms on social media, arguing that he is actually pardoned because other institutions did similar violations but less severely. Binance is still having trouble to re-enter to US market.
The legal troubles faced by the company in 2023 limited its operations within America but influenced customers to operate offshore platforms. The company’s attorney stated that public conversation is filled with inadequate sources and faulty assumptions.
However, this also ensured fairness according to her, although Binance and CZ are still faced with image degradation. The United States is said to have fallen behind due to the company’s continued operation beyond their shores.
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