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Democratic Senator Chris Murphy has accused Binance of corruption, claiming the cryptocurrency exchange “greased the wheels” for President Trump’s pardon of its founder Changpeng Zhao, who served four months in federal prison for violating anti-money laundering laws.
Murphy alleged in an October 31 post on X that Binance’s involvement in Trump-affiliated crypto projects including a $2 billion investment in World Liberty Financial’s USD1 stablecoin was part of a quid pro quo arrangement that secured the pardon.
Murphy’s comments came days after the White House confirmed that former President Donald Trump had pardoned CZ, who served four months in federal prison in 2024 after pleading guilty to violating U.S. anti–money laundering laws.
The Trump crypto deals controversy has ignited fierce debate in Washington, where critics view the pardon as a political reward for loyalty to Trump’s pro-crypto agenda.
In response to Murphy’s allegations, Binance.US defended its business practices, asserting that it conducts “comprehensive due diligence” before listing any digital asset, including projects linked to Trump crypto deals.
“We conduct comprehensive due diligence and legal review before listing any asset on Binance.US, whether it’s a stablecoin, a new ecosystem project, or a meme token,” the company said in a statement posted on X.
The platform noted that USD1, the stablecoin tied to Trump’s World Liberty Financial project, is already available on over 20 major exchanges, arguing that the listing was not politically motivated.
Kadan Stadelmann, Chief Technology Officer at Komodo Platform, told Decrypt that Murphy’s remarks reflect “a political system losing its grip” amid the rise of decentralized finance.
“Murphy is trying to defend a flailing system losing its grip on money and financial surveillance,” Kadan Stadelmann, CTO, Komodo Platform
He added that both major U.S. parties have histories of corruption and said the focus on Trump crypto deals illustrates why decentralized systems are gaining traction.
“Washington D.C. is akin to a soap opera where Democrats and Republicans lobby accusations at each other of corruption, when both are guilty,” Stadelmann continued. “What Murphy is doing is political opportunism. All of this is the reason for DeFi.”
Murphy’s comments are part of a broader Democratic backlash following Trump’s pardon of CZ. Several lawmakers have pointed to Binance’s expanding relationship with Trump’s crypto ventures, particularly a $2 billion MGX investment in USD1, which reportedly generates $60–80 million annually for World Liberty Financial and $1 billion for the Trump family.
Representative Maxine Waters denounced the move as “an appalling but unsurprising reflection of Trump’s presidency,” while Representative Ro Khanna announced new legislation aimed at banning elected officials from owning or launching cryptocurrencies.
“This pardon is a blatant example of political corruption wrapped in crypto rhetoric,” Maxine Waters, U.S. Representative (D-CA)
Meanwhile, Senators Elizabeth Warren (D-MA) and Adam Schiff (D-CA) introduced a resolution condemning the pardon, asserting that Trump’s decision followed “months of an increasingly intertwined business relationship” with Zhao. They urged Congress to prevent “such blatant corruption and influence-peddling” linked to Trump crypto deals.
The Trump crypto deals narrative has become a defining flashpoint in the 2025 political landscape, symbolizing the convergence of financial innovation, political power, and regulatory uncertainty.
For crypto investors, the controversy underscores the complex interplay between policy and market forces. While Trump’s allies frame the pardon as a victory for “ending the war on crypto,” critics warn it risks legitimizing political favoritism in digital asset markets.
Murphy’s accusation that Binance “did whatever crooked thing Trump asked” highlights ongoing tension between Washington’s regulatory establishment and the fast-moving crypto industry. As investigations and legislative proposals continue, the long-term impact of Trump crypto deals on U.S. crypto governance remains to be seen.
