Binance Hack Turns CZ’s Pardon Into Democrats’ Latest Digital-Asset Headache

Democrats are continuing their investigation into Changpeng Zhao, known as CZ, and his October 2025 pardon by President Donald Trump, following a $6.34 billion Binance security breach. The inquiry is focused on whether political connections, financial relationships or lobbying influenced the clemency decision.

The October 29 hack targeted internal wallet-signing systems and triggered unauthorized transfers across several blockchain networks. Binance said it will absorb the financial impact, while CZ, who stepped down as CEO after his 2023 guilty plea, has publicly defended the exchange and reassured users.

In May, lawmakers sent letters to 17 clemency recipients, including Zhao, seeking information about their pardon applications and any involvement from lobbyists, intermediaries or political allies. The inquiry later expanded to federal offices involved in the clemency process.

The scrutiny intensified after the October 30 breach, adding renewed attention to Zhao’s continued relationship with Binance. Zhao says he no longer manages the exchange but remains one of its most vocal public defenders and continues to comment on major developments involving the company.