TL;DR
- Changpeng Zhao (CZ) accuses Senator Warren of misinterpreting his case and leading a “war on crypto.”
- Warren criticized Trump’s pardon of CZ, accusing the Binance founder of money laundering and corruption.
- BNB’s price reacted with a 5% rise, surpassing $1,130 after the news of the presidential pardon.
Changpeng Zhao’s response to Senator Warren was forceful. The founder of Binance, (CZ), responded to fraud allegations from US Senator Elizabeth Warren.
The controversy ignited after President Donald Trump announced the pardon for CZ, a decision that has generated intense debate within the crypto community. CZ used his X account to criticize the senator, accusing her of misinterpreting his case and pointing out that there were no formal money laundering accusations against him.
Warren’s reaction to the pardon was immediate. The Democratic senator, a well-known crypto skeptic, reiterated her accusations on X. According to Warren, CZ “admitted to a money laundering crime” and, after receiving his sentence, “financed Trump’s stablecoin and lobbied for a pardon.” Warren described the situation as “corruption” and demanded congressional intervention to stop it.
In his defense, CZ categorically denied Warren’s claims, asking her to “prove her facts.” The former CEO refuted any direct involvement in financing USD1, the Trump-linked stablecoin, although sources indicate that Binance provided the technical code for the token’s smart contract.
Zhao also highlighted that Warren had declared a “war on crypto” on public television days before his original sentencing, suggesting a political bias against him.
Market Impact: BNB Reacts to the Upside
The news of Trump’s pardon for CZ has triggered an immediate bullish reaction in the market. Binance Coin (BNB), the native token of the BNB Chain, positioned itself as one of the day’s biggest gainers, posting a 5% increase that brought its price above $1,130. This rally was supported by a massive 61% increase in 24-hour trading volume, reaching $5.74 billion, suggesting strong bullish sentiment among traders.
The presidential pardon reverses the legal situation for Zhao, who had been sentenced to four months in prison in April 2024 after pleading guilty to charges related to failures in Binance’s anti-money laundering (AML) protocols.
Federal prosecutors had originally requested a three-year sentence. When announcing the pardon, Trump stated that “what [CZ] did isn’t even a crime,” citing support from “many good people” who requested the measure.
