Waters Blasts Pardon as “Pay-to-Play” Crypto Favor
Maxine Waters, the top Democrat on the House Financial Services Committee, sharply criticized Donald Trump for pardoning Changpeng Zhao (widely known as “CZ”), the founder of Binance. Waters called the move “appalling but unsurprising”, accusing Trump of doing “massive favors for crypto criminals who have helped line his pockets.” The Block+2Benzinga+2
According to Waters, Zhao pled guilty to violating the U.S. Bank Secrecy Act by failing to implement an effective anti‐money laundering program at Binance—and served a four-month prison sentence following his April 2024 conviction. Cointelegraph+1
She asserted that the pardon was the result of months of lobbying by Zhao and financial ties between him and Trump’s personal crypto venture, World Liberty Financial (WLFI). Waters characterized this as a classic example of pay-to-play corruption:
“CZ has spent months lobbying Trump and his family while funneling billions into Trump’s personal crypto company… The pardon was the payoff and a blatant example of the kind of pay-to-play corruption that Trump and his Administration continue to engage in.” TheGrio+2Sahm+2
Waters further argued that the pardon sends the wrong signal—that high-profile crypto offenders can evade accountability if they align with political and financial interests. Benzinga+1
Trump Defends Decision; Waters Warns of Broader Crypto Fallout
President Trump defended his decision by saying that “many people told me Zhao’s actions were not criminal” and framing the pardon as correcting what he labelled as the Joe Biden Administration’s “war on crypto.” The Times of India
Waters responded that the timing and nature of the pardon further highlight what she views as a presidency built on corruption and favoritism. She pointed out that the pardon came during a U.S. government shutdown—when federal employees were unpaid—questioning priorities at the highest level. Sahm+1
Beyond the individual case, Waters warned of longer-term implications: this could weaken efforts to establish strong regulatory oversight of the crypto industry, embolden bad actors, and blur lines between political influence and financial misconduct. Benzinga+1
In short: Waters argues the pardon of CZ isn’t just a discrete legal case—it symbolizes a deeper risk that regulatory accountability is being undermined in favour of crypto interests aligned with Trump.
