President Donald Trump is facing immediate backlash after pardoning Changpeng Zhao, the founder of Binance.
Joe Lonsdale, a billionaire venture capitalist and cofounder of Palantir, publicly questioned the president’s decision.
“I love President Trump; this is possibly the greatest admin of my lifetime—except for these pardons,” Lonsdale posted on X.
Lonsdale highlighted that the pardon “makes it look like massive fraud is happening around him in this area.”
Changpeng Zhao, better known as CZ, served four months in prison after pleading guilty to money-laundering violations.
The violations allegedly allowed drug dealers, terrorists, and child sex abusers to move money on Binance’s platform, per the Daily Beast.
The pardon comes months after Binance signed a deal with the Trump family’s crypto venture, World Liberty Financial.
That deal could generate millions of dollars for the president’s family, according to reports.
Conservative activist Laura Loomer criticized early reports of a potential pardon.
“Another terrible pardon idea that I’m sure someone is getting paid a lot of money to push,” Loomer said on X.
She suggested the administration is being set up by outside interests.
North Carolina Sen. Thom Tillis (R) also condemned the pardon, calling it a “bad signal.”
“I don’t like it,” Tillis said. “He was convicted. He’s not innocent.”
Zhao has been barred from operating Binance in the U.S. since 2023, after his conviction.
He has lobbied the Trump administration for a pardon since his release last September.
The Wall Street Journal reported that representatives of the Trump family discussed taking a stake in Binance’s U.S. operations.
Zhao denied any connection between the pardon and the potential business deal.
“Fact: I have had no discussions of a Binance US deal with … well, anyone,” Zhao posted on X.
He emphasized that no felon would mind a pardon, especially being the only person in U.S. history sentenced to prison for a single Bank Secrecy Act charge.
Trump admitted he did not know Zhao personally when granting the pardon.
“I don’t believe I’ve ever met him, but he had a lot of support, and they said that what he did is not even a crime,” Trump said.
Trump added that Zhao “was persecuted by the Biden administration,” according to the president.
Multiple Democrats also condemned the move, citing corruption concerns.
“First, Changpeng Zhao pleaded guilty to a criminal money-laundering charge. Then he boosted one of Donald Trump’s crypto ventures and lobbied for a pardon,” Senator Elizabeth Warren said.
“Today, Donald Trump did his part and pardoned him. If Congress does not stop this kind of corruption in pending market structure legislation, it owns this lawlessness,” Warren added.
The pardon is already sparking debate among both Trump supporters and critics.
Some argue it undermines trust in the justice system.
Others insist the president acted on good advice from his team.
“This is a complex situation, but the optics are terrible,” Lonsdale noted.
Trump’s decision will likely remain a major talking point in political and financial circles.
The president’s crypto ventures could continue drawing scrutiny as a result.
