US Senators Demand Probe Into Trump’s Binance Crypto Ties
A coalition of Democratic senators is calling for a federal investigation into President Donald Trump’s alleged connections with embattled cryptocurrency exchange Binance, citing growing concerns over corruption, conflicts of interest, and foreign financial influence on U.S. digital asset policy.
In a letter to Attorney General Pam Bondi and Treasury Secretary Scott Bessent, the senators called for a full breakdown of what Binance has done to abide with its 2023 plea agreement, given recent reports linking Trump and his family to dealings with the world’s biggest crypto company.
Trump-Linked Stablecoin Fuels Foreign Deals
The decision, which entailed a historic $4 billion fine and resignation of Binance’s founder, Changpeng “CZ” Zhao, was initially celebrated as a significant win by US regulators striving to purify the digital asset space.
But after Trump’s resurgence in the White House in 2024, such regulatory gains seem to be under threat, as lawmakers attest. Trump has boldly adopted cryptocurrency during his second term, launching a Trump memecoin and inviting top holders to private events.
His family’s crypto enterprise, World Liberty Finance, recently helped Abu Dhabi-based MGX Capital to raise $2, billion for Binance using a Trump-connected stable coin, USD1.
As stated in a Bloomberg report, the senators cited concerns over Binance’s compliance obligations becoming more acute, given recent reports that the company is using the Trump family’s stablecoin to partner with foreign investment companies:
“The combination of presidential power, family money interests, and foreign crypto deals sends a red flag that cannot be ignored, and for me, it sends a huge red flag to me, personally.”
GENIUS Act Blocked Over Corruption Concerns
This letter, signed by a number of high-profile Democrats including Senator Elizabeth Warren, was issued during a legislative impasse of crypto regulation. Only hours before the letter’s release, the same group of senators staved off a vote on the long-awaited GENIUS Act: a bill to create a national regulatory framework for stablecoins.
Warren argued that the move to bolster the bill would actually “facilitate this kind of corruption” by not bothering to address Trump’s direct financial interests.
Meanwhile, Secretary Bessent lamented the legislative stall and said the Senate had “missed an opportunity” to do the needful: protect consumers and stabilize crypto markets. He did not comment directly on Trump’s alleged conflicts of interests.
CZ Zhao Seeks Pardon From White House
According to a State Democracy Defenders Action April report, almost 40% of Trump’s net worth is now invested in crypto-related ventures. The group cautioned that the then-current version of the GENIUS Act “wouldn’t prevent President Trump from using his executive powers to create a regulatory environment and enforcement agenda that would place his own enrichment ahead of the broader interests of U.S. stakeholders”.
On top of that, leaked news came out that CZ Zhao had petitioned the White House to seek a federal pardon. Even though Zhao has already spent four months in prison, he could still regain executive positions in crypto firms and even a job back at Binance thanks to his pardon.
Neither the Department of Justice nor the treasury has so far responded to the senators’ letter through the media. With the crypto industry becoming deeply embroiled in American politics, lawmakers are under mounting pressure to address the ethical and legal ramifications of a President whose fiscal prospects may owe to the very same networks he is charged with controlling.
