Banking and Finance Law Daily Wrap Up, FINANCIAL STABILITY—Waters calls out Trump over Zhao pardon, (Oct 28, 2025)
Organizations Mentioned:Binance | World Liberty Financial, Inc.
Waters warned the pardon “is sending a dangerous and reckless message to white-collar criminals and the entire cryptocurrency industry.”
Representative Maxine Waters (D-Calif.), Ranking Member of the House Financial Services Committee, has released a statement marking the 27th day of the federal government shutdown criticizing President Donald Trump for pardoning Binance founder Changpeng Zhao. In November 2023, Zhao pleaded guilty to violating the Bank Secrecy Act for failing to maintain an effective anti-money laundering program at Binance and was sentenced to four months in prison and fined $100 million.
“[Zhao’s] pardon is another glaring example of the pay-to-play corruption that has defined the Trump Administration from day one,” according to Waters, citing Zhao’s financial support of World Liberty Financial, Inc. (WLF), a company backed by the Trump family, and WLF’s stablecoin $USD1. “[T]he Trump Administration is sending a dangerous and reckless message to white-collar criminals and the entire cryptocurrency industry. It’s telling crypto criminals that they can break the law, defraud investors, and get away with it, as long as they are also Trump’s benefactors. Meanwhile, everyday investors are left completely vulnerable.”
Waters further contended that “most enforcement, examination, and investor protection activities” have stopped during the shutdown. “Ongoing investigations into market manipulation and fraud have been suspended, and new cases are no longer being filed,” Waters said. “With nearly no oversight, bad actors like [Zhao] are free to operate without accountability, putting hardworking Americans at risk as their savings, investments, and retirement security are left unprotected.”
Companies: Binance; World Liberty Financial, Inc.
LegislativeActivity: BankSecrecyAct Blockchain CrimesOffenses EnforcementActions FinancialStability FinTech SecuritiesDerivatives