Waters’ Criticism of President Trump
In a press release issued on Thursday, Waters aired her disapproval of the pardon, describing President Trump’s action as him bestowing ‘massive favors for crypto criminals.’ She added that such actions occurred while the President made no significant efforts to end the ongoing government shutdown.
Waters minced no words in expressing her disappointment and revulsion, referencing the pardon as an ‘appalling but unsurprising reflection of his presidency.’ She described Trump’s presidency as typified by corruption, self-interest, and loyalty to criminals over the working-class American citizens.
Trump’s Announcement and Zhao’s Conviction Explained
Trump’s pardon of Changpeng Zhao was officially announced on Thursday. The White House provided a justification for the pardon, explaining that Zhao was prosecuted under the Biden Administration out of a desire to penalize the cryptocurrency industry, even when there were no identifiable victims. The founder of the largest cryptocurrency exchange had pleaded guilty back in 2023 to failing to maintain an effective anti-money laundering program.
Facing a hefty fine, Zhao had to pay $50 million, and his company, Binance, was directed to pay an additional $4.3 billion as a settlement agreement. Following this, Zhao had served four months in prison and was released in September 2024.
Trump later admitted to the press that he personally does not know Zhao and that numerous people had recommended him for the pardon.
Rep. Waters Accusations: Pay-to-play
Rep. Waters has made allegations that Zhao’s pardon was the result of his lobbying efforts involving not only Trump but also his family. She believes that Zhao injected billions into Trump-affiliated crypto company, World Liberty Financial, and the pardon was a payoff—an example of ‘pay-to-play corruption.’
Waters stated in no uncertain terms that the actions of the Trump administration ‘effectively legitimize’ the crypto crime for which Zhao was previously convicted.
Waters has consistently criticized Trump’s involvement with the crypto industry, along with his administration’s efforts to push for crypto advancement in the United States.
Pardon Patterns and Public Speculations
Since his re-election, Trump has pardoned multiple people whom he believed were unjustly convicted by the Biden administration. One of them is Ross Ulbricht, known for creating the online black market Silk Road.
The pardon has led to public speculations that Trump might use his influence to also free FTX founder Sam Bankman-Fried, who is currently serving a long prison sentence.
In addition, crypto enthusiasts have voiced opinions that Trump should consider pardoning Tornado Cash developer Roman Storm. The developer was convicted in the U.S for charges related to operating an unlicensed money-transmitting business.
Note: This article is for informational purposes only and is not intended as legal, tax, investment, financial, or other advice.
