President Donald Trump has granted a full pardon to Changpeng Zhao, the billionaire founder of cryptocurrency exchange Binance, just months after Zhao pleaded guilty to money laundering violations.

The move, announced late Wednesday, has triggered a wave of criticism from Democratic lawmakers and ethics watchdogs, who cite potential conflicts of interest tied to the Trump family’s growing involvement in digital assets.

Zhao, 48, began serving a four-month sentence in September 2024 after admitting that Binance failed to implement adequate anti-money laundering controls, enabling billions in illicit transactions by drug cartels and sanctioned entities. The company paid a record $4.3 billion fine, and Zhao resigned as CEO.

The pardon, which restores Zhao’s civil rights and lifts restrictions on his business activities, was defended by White House Press Secretary Karoline Leavitt as a correction of what she called the Biden administration’s “war on cryptocurrency.” Trump echoed that framing, telling reporters in the Oval Office, “A lot of people say he wasn’t guilty of anything,” while denying any personal meetings with Zhao.

Zhao, a Canadian citizen of Chinese descent, responded on X with gratitude: “Deeply grateful… Will do everything we can to help make America the Capital of Crypto.” The pardon aligns with Trump’s broader pivot toward the crypto industry, including recent executive orders easing regulations and hosting summits with blockchain leaders.

However, the timing has raised red flags. Senator Elizabeth Warren (D-Mass.) accused Trump of engaging in a quid pro quo, citing reports that Binance invested $2 billion into Trump’s World Liberty Financial via its USD1 stablecoin. The company also has reported ties to Dominari Holdings, a Trump Tower-based firm led by Eric and Donald Trump Jr. Trump’s 2024 financial disclosures showed $57 million in earnings from the venture.

“This pardon reeks of corruption,” Warren posted on X. “Zhao pleaded guilty, then backed Trump’s crypto ventures—and now he walks free.”

Citizens for Responsibility and Ethics in Washington (CREW) called for an investigation, warning that the pardon could further erode public trust in both the presidency and the cryptocurrency sector, which has been rocked by scandals in recent years. Legal experts noted that presidential pardons are constitutionally absolute and rarely overturned, though Warren has pledged Senate oversight.

Binance declined to comment on the pardon. Allies of Zhao argue that his clemency petition predated any financial ties to Trump-linked entities and followed standard lobbying procedures for high-profile white-collar convictions.

The crypto market responded swiftly: Bitcoin surged 5% following the announcement, reflecting investor optimism over Trump’s continued embrace of digital finance. The industry contributed an estimated $150 million to his reelection campaign, underscoring its growing political clout.

For Zhao, the pardon offers a path back to influence in a sector he once dominated. For critics, it’s a stark reminder of the blurred lines between political power and private gain in Trump’s Washington.