Trump's Pardon of CZ Sparks Controversy: "I Don't Know Him," He Claims Amid Ties Questions

President Donald Trump has downplayed his knowledge of crypto entrepreneur Changpeng Zhao, despite granting him a full pardon last month, brushing off questions about potential ties between Zhao’s business and the Trump family’s cryptocurrency ventures.

Trump’s Remarks: “I Don’t Know Who He Is”

In a 60 Minutes interview, Trump responded to questions about the pardon with a curt, “Okay, are you ready? I don’t know who he is… I know he got a four-month sentence or something like that and I heard it was a Biden witch hunt.” The pardon came after Zhao’s 2023 guilty plea to violating anti-money laundering laws, resulting in a four-month prison sentence. Trump framed the case as politically motivated, aligning with his broader narrative of challenging past administration actions.

When pressed on a $2 billion deal reportedly involving Zhao’s company and a stablecoin project backed by the Trump family, Trump dismissed it, stating, “I know nothing about it because I’m too busy.” He added that his sons are “running a business” in the crypto space, saying, “I’m glad they are [in crypto] because it’s probably a great industry. They’re running a business, they’re not in government.”

The Pardon and Its Backdrop

Zhao’s pardon, issued amid his lobbying efforts and business activities, has fueled debates about conflicts of interest. The entrepreneur, who pleaded guilty to failing to maintain an effective anti-money laundering program, was sentenced to four months in prison in 2023. The Department of Justice described the resolution as addressing criminal violations of anti-money laundering laws. Trump’s decision, one of several crypto-related pardons, has drawn sharp criticism from lawmakers who see it as emblematic of undue influence in digital asset markets.

Warren’s Criticism and Legal Backlash

Senator Elizabeth Warren amplified the controversy with a social media post, stating that Zhao “pleaded guilty to a criminal money laundering charge and was sentenced to prison.” This drew a response from Zhao’s attorney, Teresa Goody Guillén, who demanded a retraction, arguing the statement misrepresented his plea and damaged his reputation. Warren’s legal team, led by Ben Stafford, rejected the threat, asserting the comments were “true in all respects” and protected by the First Amendment. Stafford emphasized that the offense under the Bank Secrecy Act is explicitly criminal, supported by Department of Justice filings, and that no malice or falsity was present.

The exchange underscores ongoing tensions between crypto leaders and regulators, with Warren’s team citing public records and the high bar for defamation claims against public figures.

Implications for Crypto and Regulation

This episode, coinciding with regulatory shifts and the acceleration of digital asset adoption, raises questions about the intersection of politics and finance. As countries grapple with frameworks for stablecoins and tokenized assets, such controversies could influence public perception and policy directions. The pardon, one of several in the crypto space, has also drawn bipartisan scrutiny, with calls for greater transparency in lobbying and business dealings.

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In summary, Trump’s denial of knowing Zhao, despite the pardon, and the ensuing legal clash with Warren underscore the intricate ties between crypto, politics, and regulation, shaping 2025’s financial narrative.