Binance founder Changpeng Zhao (CZ) has issued a firm rebuttal in response to allegations from U.S. Senator Elizabeth Warren. This exchange unfolded following the pardon issued to Zhao by former President Donald Trump, who had previously been convicted for failing to follow sufficient anti-money laundering (AML) protocols at Binance.

Warren Accuses CZ of Corruption

Warren criticized the pardon, stating that CZ had pleaded guilty to a money laundering charge and had been sentenced to prison. She also alleged that he had financed Trump’s stablecoin before seeking the president’s clemency. “If Congress does not stop this kind of corruption, it owns it,” she stated.

Her comments intensified the focus on Zhao’s connections with Trump-related crypto projects. Reports from The Wall Street Journal suggested that he and his partners had financially supported initiatives linked to these projects before his lobbying activities.

CZ responded to the claims, arguing that Warren misrepresented his charges. He remarked that “a U.S. Senator can’t get her facts right, in a public post about a person’s charge,” asserting that “there were NO money laundering charges.” CZ also claimed that the Department of Justice (DOJ) was biased, implying that the case against him had political motivations from the Biden administration regarding crypto enforcement.

Zhao had earlier admitted guilt related to the Bank Secrecy Act (BSA) violations and served a sentence linked to Binance’s compliance deficiencies. On Thursday, Trump granted him a full pardon, which annulled the conviction and restored his civil rights.

Allegations of Insider Information

Warren was not solely responsible for the rising controversies following this development. Members of the X crypto community highlighted a particular trader known as a HyperLiquid whale, who gained significant profits from shorting the market right before President Trump’s tariff announcement, amassing over $190 million.

This trader, reportedly associated with a Polymarket account named “bigwinner01,” had predicted a pardon for CZ in 2025, profiting more than $56,000 in the process. Blockchain analysts have traced this wallet activity and have commented on the timing of both the market short and the prediction.

Some speculate that this situation indicates “obvious insider knowledge,” while others argue that the pardon was anticipated given Zhao’s lobbying and associations with ventures connected to Trump.

In the meantime, sentiments supporting Warren’s concerns are shared among certain observers. Entrepreneur Nick O’Neill voiced that the pardon sends a troubling message for the industry, stating, “CZ at this point can get away with literally anything,” and criticized Trump for easing the pressures on his allies as long as they contribute to his wealth. He emphasized the pressing requirement for a transparent regulatory framework in the U.S. and described the scenario as a clear signal of corruption.