The Curious Case of the Crypto Pardon
Donald Trump's recent claim that he doesn't know Changpeng Zhao—"CZ," the crypto mogul pardoned last month—raises more questions than it answers. It's a head-scratcher. On the surface, it seems absurd. You don't just pardon someone without knowing who they are, especially when that someone pleaded guilty to enabling money laundering.
Trump says he was told Zhao was the victim of a "witch hunt" by the Biden administration. White House Press Secretary Karoline Leavitt echoed this sentiment, calling the prosecution an "overly prosecuted case" and part of a "war on cryptocurrency." But let's break down the layers here. The Trump administration previously halted a fraud case against crypto entrepreneur Justin Sun after Sun's investments in the Trump family's crypto firm, World Liberty Financial. There's a pattern emerging, and it's not just about "correcting overreach."
The question isn't whether Trump literally knows CZ's face. The question is: what level of plausible deniability is being constructed, and why? Was this a calculated decision, or a series of coincidences that look bad in hindsight?
Follow the Money (and the Connections)
CZ's companies have partnered with firms linked to Trump, including Dominari Holdings, where Trump's sons sit on the board of advisers. Dominari is even based in Trump Tower. The stablecoin launched by World Liberty Financial, another Trump-linked entity, was slated to be used by an Abu Dhabi firm for a $2 billion investment in Binance. (That’s a hefty sum, even by crypto standards).
This isn't just about Binance, either. Trump also pardoned founders of the crypto exchange BitMEX, who faced charges related to money laundering, and Ross Ulbricht, founder of the Silk Road. The numbers are adding up and pointing to a clear endorsement of the crypto industry.
The pardon lifts restrictions that had stopped Zhao from running financial ventures, but it's unclear whether it changes his standing with US regulators or his role at Binance. (And this is the part of the whole saga that I find genuinely puzzling. Why go this far if the practical impact is so limited?)
Is this a calculated move to court the crypto industry, or a series of favors granted to people connected to Trump's orbit? The answer, most likely, is somewhere in between. It’s worth remembering that Binance remains the most used crypto exchange globally. Trump, during the 60 Minutes interview, stated that the US had to be a leader in the crypto industry or risk China gaining an advantage. This could be the motivation behind the pardons.
The Cost of "Not Knowing"
Trump claims to "not know" CZ, but this statement needs to be put into context. 'I don't know who he is,' says Trump after pardoning crypto tycoon. The Trump administration has shown a pattern of being friendly to crypto ventures, especially those connected to the Trump family's financial interests. While it's impossible to know Trump's true motivations without more data, the evidence suggests a calculated strategy that benefits both Trump's political ambitions and his financial interests.
The real question is: what's the cost of this "not knowing"? What are the potential implications for national security and the integrity of the financial system? And perhaps most importantly, what message does it send when someone who pleaded guilty to enabling money laundering gets a get-out-of-jail-free card, regardless of who pulled the strings?
The Numbers Don't Lie
It doesn't matter if Trump knows CZ's favorite ice cream flavor. The connections, the pardons, and the pattern of behavior all point to a clear pro-crypto agenda, potentially influenced by personal financial interests. The "I don't know him" defense is just a smokescreen.
