Democrats are pressing ahead with their investigation into the presidential pardon granted to Changpeng Zhao, widely known as CZ, as Binance faces renewed scrutiny following a reported $6.34 billion security breach. The inquiry has once again put the exchange’s founder in the spotlight. Although Zhao says he no longer oversees Binance’s operations, he remains one of the company’s most prominent public supporters.
The October 29 attack compromised Binance’s internal wallet-signing infrastructure, resulting in unauthorized asset transfers across multiple blockchain networks. Binance has said it will cover the financial losses, while CZ has continued defending the exchange and attempting to reassure its users.
The incident has renewed questions about Zhao’s ongoing relationship with Binance. Although he resigned as CEO after pleading guilty in 2023, his connection to the exchange remains strong, and he continues to speak publicly about major company developments.
Democrats Renew Investigation Into CZ Pardon
Democratic lawmakers are examining whether political relationships, financial connections, or lobbying efforts played a part in President Donald Trump’s decision to pardon Zhao in October 2025.
In May, lawmakers sent letters to 17 individuals who received presidential clemency, including Zhao, requesting details about their pardon applications and any involvement by lobbyists, intermediaries, or political associates. The investigation subsequently broadened to include federal agencies responsible for handling the clemency process.
The scrutiny increased following Binance’s security incident. On October 30, Maxine Waters, the ranking Democrat on the House Financial Services Committee, highlighted Binance’s reported connections to the Trump family-backed World Liberty Financial, the SEC’s decision to abandon its case against Binance and CZ, and Trump’s pardon of the former CEO.
Zhao pleaded guilty in 2023 to failing to establish and maintain an effective anti-money-laundering program at Binance. Following his resignation as CEO, he served a four-month prison sentence before receiving a presidential pardon.
The Democratic investigation is focused on understanding how Zhao secured clemency and whether political or financial relationships influenced the decision. Binance’s latest security breach has added another dimension to the scrutiny, bringing its operational security and accountability under renewed examination.
Binance Hack Fuels Questions Over CZ’s Ongoing Influence
In its November 3 incident update, Binance estimated the value of the affected assets at $6.34 billion. The attacker reportedly compromised an internal wallet-signing service and executed unauthorized transfers outside the exchange’s standard withdrawal procedures.
The stolen assets moved across multiple blockchain networks, including XRP, Solana, Optimism, Bitcoin, and Ethereum. Binance reported that approximately $2.85 billion had been frozen or intercepted, while 98% of the affected token assets had been replenished by October 31.
The security breach involved Binance’s internal wallet infrastructure rather than the consensus mechanism of BNB Chain. The exchange reported no exploit targeting BNB Chain’s consensus system, distinguishing the incident from an attack on the blockchain itself.
CZ has continued to maintain a prominent role in the public response. After Elon Musk appeared to make fun of the incident online, Zhao urged him to stop trolling and brought up Binance’s investment in SpaceX, which he valued at more than $1 billion.
Binance co-CEO Yi He subsequently stated that the exchange generated enough revenue to absorb the losses without selling its SpaceX investment. CZ later clarified that his remarks were not intended to signal any potential sale of the stake.
Binance maintains that it has allocated sufficient reserves to cover the financial impact and is working to reinforce the compromised infrastructure. The investigation is still underway, with independent cybersecurity assessments also planned.
The developments demonstrate that Zhao remains closely connected to Binance’s public image despite leaving the CEO position. He continues to defend the exchange, communicate with its users, and comment on significant developments involving its finances and operations.
As Democrats continue examining the circumstances behind CZ’s presidential pardon, Binance faces the challenge of rebuilding confidence following one of the largest reported security incidents in the crypto industry. Together, the developments have renewed questions about Zhao’s political connections, his continuing influence over Binance, and the exchange’s ability to safeguard customer assets.
About The Author
More Stories
Bitcoin Stays Above $80K as Injective Surges on Staked ETF Listing
VanEck Says Bitcoin Mining Stocks Are Oversold After October’s 35% Sell-Off
XRP Ledger Patches Disclosed Vulnerability That Could Have Enabled Unauthorized Token Creation