Trump Family Profits Following Pardon of Binance Founder
NEWS & RESEARCH
Months after the UAE invested $500 million in the Trump-owned crypto firm World Liberty Financial (WLF), the UAE-backed firm MGX funneled $2 billion into the exchange Binance using WLF’s stablecoin, USD1. This move significantly increased USD1’s circulation, potentially netting WLF tens of millions in revenue. Approximately four months later, President Trump pardoned Binance founder Changpeng Zhao, who had lobbied for clemency following a 2023 money laundering conviction. Binance has since become a cornerstone of the Trump family business.
SOURCES: New York Times | WIRED | New Yorker | Violation Tracker
ANALYSIS & OPINION
Ethics experts and former officials have condemned the deal and subsequent pardon. Former DOJ Attorney Elizabeth Oyer labeled the move "pardon abuse," while Cornell economist Eswar Prasad described it as a "brazen flouting of the rule of law" aimed at boosting the crypto industry. Reporting suggests Binance effectively "powers" USD1 by providing its underlying code and a dedicated trading platform to drive adoption.
SOURCES: Guest Essay: New York Times | New Yorker | New York Times
HOW TO FIX IT
Congressional action:
Increase Transparency: Pass the Presidential Pardon Transparency Act, requiring the public disclosure of all pardon details, and mandate that the administration provide Congress with the prosecution history of pardoned individuals.
Limit Pardon Power: Support Constitutional Amendment to prohibit self-pardons, family pardons, and clarify that pardons issued for corrupt purposes (such as bribes) are invalid.
Regulate Crypto Ethics: Enact the Stop TRUMP in Crypto Act and End Crypto Corruption Act to manage conflicts in the digital asset space.
Enforce Financial Separation: Mandate that presidential investments be placed into a blind trust to prevent direct control over business interests.
Legislation: H.R.252 - Presidential Pardon Transparency Act of 2021| H.J.Res.4 - Proposing an amendment to the Constitution of the United States limiting the pardon power of the President | H.R.3573 - Stop TRUMP in Crypto Act of 2025 | S.1668 - End Crypto Corruption Act of 2025
