Democratic lawmakers are continuing to examine Changpeng Zhao’s presidential pardon as Binance comes under renewed pressure following a reported $6.34 billion security breach. The investigation has brought fresh attention to the former Binance CEO, who maintains that he is no longer involved in running the exchange but continues to defend the company publicly.
The October 29 attack compromised Binance’s internal wallet-signing systems, allowing unauthorized transactions across multiple blockchain networks. Binance has pledged to absorb the losses, while Zhao has spoken out in support of the exchange and sought to reassure its users.
Despite leaving his CEO position in 2023, Zhao remains closely linked to Binance. His public comments on company matters have kept him in the spotlight, particularly as the exchange faces questions about its security practices and leadership accountability.
Democrats Step Up Scrutiny of CZ Pardon
Democrats are investigating whether political relationships, financial interests, or lobbying activities influenced President Donald Trump’s decision to pardon Zhao in October 2025.
The inquiry began gaining traction in May when lawmakers contacted 17 presidential clemency recipients, including Zhao. Their letters requested information about the pardon process and whether lobbyists, intermediaries, or political associates played any role. The investigation subsequently extended to federal agencies involved in reviewing and granting clemency.
Attention intensified after Binance disclosed its security breach. On October 30, Maxine Waters, the top Democrat on the House Financial Services Committee, raised concerns about Binance’s reported links to the Trump family’s World Liberty Financial, the SEC’s decision to drop its lawsuit against Binance and Zhao, and Trump’s pardon of the former executive.
Zhao admitted in 2023 that he failed to maintain an effective anti-money-laundering program at Binance. He subsequently resigned as CEO and served four months in prison before receiving Trump’s presidential pardon.
Lawmakers are now seeking to establish whether political or financial connections helped secure the pardon. Binance’s latest security incident has expanded the discussion, placing the exchange’s internal safeguards and responsibility for protecting customer funds under additional scrutiny.
Binance Security Breach Puts CZ’s Influence Back in Focus
Binance’s November 3 update estimated the value of assets affected by the October 29 attack at $6.34 billion. According to the exchange, the attacker obtained unauthorized access to an internal wallet-signing service and initiated transfers that bypassed its regular withdrawal procedures.
The stolen funds were distributed across several blockchain networks, including XRP, Solana, Optimism, Bitcoin, and Ethereum. Binance said it had frozen or recovered approximately $2.85 billion, while replenishing 98% of the affected token assets by October 31.
The incident involved the exchange’s internal wallet infrastructure and did not compromise BNB Chain’s consensus mechanism. Binance reported no consensus-level exploit, indicating that the breach was limited to its exchange-side systems rather than the underlying blockchain.
Zhao has also remained actively involved in the public discussion surrounding the attack. Following Elon Musk’s apparent mockery of the incident online, CZ responded by asking him to stop trolling and highlighted Binance’s investment in SpaceX, which he said exceeded $1 billion.
Binance co-CEO Yi He later explained that the exchange had sufficient revenue to cover the financial damage without disposing of its SpaceX investment. Zhao subsequently clarified that his earlier remarks did not indicate that Binance intended to sell the stake.
The exchange has maintained that its financial reserves are sufficient to absorb the losses. It is also working to improve the affected infrastructure, while its investigation continues alongside plans for independent cybersecurity assessments.
Zhao’s continued involvement in public discussions highlights his lasting association with Binance, even after stepping down as CEO. He remains an influential voice in the company’s public response, addressing users and commenting on significant operational and financial developments.
With Democrats continuing to investigate the circumstances surrounding his pardon, Binance faces simultaneous pressure over its political connections and security practices. The latest developments have intensified questions about Zhao’s influence, his relationship with the Trump administration, and the exchange’s ability to protect customer assets following the massive breach.
