White House Confirms CZ Pardon Underwent ‘Thorough Review Process’

Jimmy Aki
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According to White House Press Secretary Karoline Leavitt, the pardon for Binance founder Changpeng “CZ” Zhao was subject to a rigorous legal examination before President Trump approved it.

In a statement made on November 4, she emphasised that the Department of Justice and the White House Counsel’s Office carefully examined the request before forwarding it to the President for final consideration.

Leavitt Asserts CZ Pardon Corrects the Wrong of the Biden Administration

She said the CZ Pardon was necessary because Zhao’s punishment under the Biden administration was “excessive and politically driven.” According to her, the Justice Department was used as a political tool, and Zhao’s case became an example of that misuse

https://www.youtube.com/live/567EpNddcJI?si=-uCSs3qFrKQXZtdM

Leavitt clarified that Zhao did not plead guilty to money laundering. Instead, he admitted to failing to ensure Binance had a fully effective anti-money laundering compliance system, which is a key difference.

Under the Biden administration, prosecutors requested a three-year sentence. The judge said that the request was too severe and sentenced Zhao to four months instead, which he began serving in April 2024.

Leavitt said the CZ Pardon restores fairness because the punishment had already gone beyond what was reasonable for a first-time, non-violent compliance offence.

Supporters, including Zhao’s legal team, have made this same point for months.

She also noted that the White House under President Trump signals a new shift in how the United States will interact with the crypto sector. In her words, the CZ Pardon marks the end of the Biden-era crackdown and the start of a more balanced approach.

President Trump Flags CZ Pardon Criticism as “Politically Motivated”

The CZ Pardon, signed on October 23, drew national attention and divided opinions. Critics questioned whether it was an act of justice or political loyalty.

In a November 1 interview with CBS News, President Trump defended the decision, saying he had no personal relationship with Zhao. He noted that the decision came after a legal process, not personal ties, echoing Leavitt’s earlier statement.

Some critics, including Senator Elizabeth Warren, criticised the pardon, claiming that Zhao supported a crypto project linked to the Trump family called World Liberty Financial. She argued that the connection influenced the decision.

https://twitter.com/SenWarren/status/1981401323280224349

A Bloomberg report also alleged that Binance technology backed the project’s token. Zhao denied the claim, saying the story aimed to damage Binance’s reputation. Binance CEO Richard Teng also dismissed the report.

Supporters of the CZ Pardon said the criticism ignored the facts. They explained that Zhao was convicted for compliance mistakes, not for fraud or theft, and said many people had misunderstood the facts of his case.

Representative Ro Khanna opposed the pardon, saying Zhao had pleaded guilty to money laundering and that the decision reduced accountability.

But court documents show something different: Zhao admitted to compliance failures, not to actually laundering money himself.

As the debate continues, the White House maintains that the CZ Pardon went through proper legal steps and represents its effort to bring fairness and openness to how crypto-related cases are handled.

About Jimmy Aki PRO INVESTOR

Based in the UK, Jimmy is an economic researcher with outstanding hands-on and heads-on experience in Macroeconomic finance analysis, forecasting and planning. He has honed his skills having worked cross-continental as a finance analyst, which gives him inter-cultural experience. He currently has a strong passion for regulation and macroeconomic trends as it allows him peek under the global bonnet to see how the world works.