Binance co-founder Changpeng “CZ” Zhao has pushed back against a recent accusation from U.S. Senator Elizabeth Warren. In a post shared on X, Zhao wrote that Warren “can’t get her facts right,” responding to her claim that he had “pleaded guilty to a criminal money-laundering charge.”
According to court records, Zhao pleaded guilty to one charge under the US Bank Secrecy Act for failing to maintain an effective Anti-Money Laundering (AML) program at Binance. He was not charged with laundering money. The court sentenced Zhao to four months in prison in April 2024. This week, he received a presidential pardon.
Zhao acknowledged responsibility for the compliance failures under his leadership but said that the case did not involve him personally laundering money. “There were NO money laundering [charges],” he wrote online, correcting public claims around the plea.
Social Media Reactions and Clarifications
After Zhao’s comments, some users online argued that his plea still tied him to money-laundering activity through negligence. One post claimed the charge “was still very much a money-laundering conviction.” Zhao replied by stating that he took full responsibility for not preventing illegal activity on the platform, but he did not engage in criminal conduct himself.
Under Zhao’s leadership, Binance paid a large financial settlement to US authorities. This was part of an agreement over past failures in preventing suspicious activity on its platform. However, the official charge against Zhao remained limited to not enforcing proper controls, not the act of laundering funds.
Zhao’s remarks were made in response to Senator Warren, who has repeatedly criticized the crypto industry for regulatory failures and political lobbying.
Pardon Ties Spark New Controversy
Warren went on to claim that Zhao had “financed President Donald Trump’s stablecoin and lobbied for a pardon.” This comes amid scrutiny over the Trump-backed USD1 stablecoin. A Bloomberg report in July claimed Binance helped write the base code for USD1, which led to concerns over ties between the platform and Trump.
Zhao denied any involvement and threatened legal action against Bloomberg over the article. He previously said he “wouldn’t mind a pardon” but did not confirm any contact with political figures or involvement in lobbying for clemency.
Binance has not released any further comments on Warren’s claims. The company previously stated that its operations remain separate from any political campaigns or organizations.
Lawmakers Raise Broader Concerns
Warren’s remarks were followed by similar criticism from Representative Maxine Waters, a senior member of the House Financial Services Committee. Waters accused Trump of helping crypto executives “who have helped line his pockets.” She referred to Zhao’s case as an example of what she described as special treatment for wealthy individuals with political connections.
She also claimed Zhao enabled activity involving illegal groups by allowing transactions to occur without proper monitoring on Binance. The White House has not responded to the allegations, and the pardon remains in effect.
Reports have also pointed to a sharp increase in Trump’s personal wealth during his second term, with over $1 billion in reported pre-tax profit over the past year. Eric Trump publicly stated the family’s total earnings were “probably more.”
Zhao’s team has denied any illegal coordination with political figures and maintains that the charges were based solely on regulatory failures, not criminal intent.
