CZ’s Lawyer Explains Trump Pardon, Slams Crypto War Narrative

Teresa Goody Guillén, representing Binance founder Changpeng Zhao, provided crucial context about the nature of the allegations against her client during her appearance on Anthony Pompliano’s podcast. She explained that Zhao faced prosecution for failing to implement proper anti-money laundering programs and compliance systems at Binance, but emphasized this constituted a regulatory issue rather than criminal conduct. “He was pardoned because he should not have been prosecuted in the first place,” Guillén stated, adding that the presidential pardon from Donald Trump served as official confirmation that no crime had been committed.

The attorney highlighted what she described as an unprecedented targeting of an individual for such regulatory violations, noting that executives at traditional financial institutions typically face different treatment. Guillén positioned this prosecution as part of regulators’ broader “war on crypto,” particularly intensifying in the aftermath of the FTX collapse. This characterization suggests a regulatory environment where cryptocurrency innovators face disproportionate scrutiny compared to their counterparts in conventional finance.

Guillén provided detailed insight into the presidential pardon mechanism, explaining that applications undergo extensive review by multiple government offices before reaching the president’s desk. The process involves scrutiny from the Department of Justice, the Office of the Pardon Attorney, and the White House Counsel, creating multiple layers of bureaucratic oversight. This description directly countered speculation about a “quid pro quo” arrangement or corruption in Zhao’s case, which Guillén attributed to misinterpretations and unverified sources.

The attorney also addressed misunderstandings regarding Zhao’s business relationships, including connections to firms like World Liberty Financial, clarifying that these associations had been widely misread by the public and media. She further criticized political statements from figures like Senator Elizabeth Warren, asserting they demonstrated how public officials can shape inaccurate perceptions without factual basis. Guillén’s comprehensive defense aimed to separate factual legal proceedings from speculative narratives that had dominated public discourse.

Despite the presidential pardon clarifying Zhao’s legal status, Guillén confirmed that he will not return to Binance while the exchange continues operating under restrictions from multiple U.S. agencies. The Department of Justice, Commodity Futures Trading Commission, and Treasury Department maintain oversight of Binance’s operations, despite the absence of fraud findings, identified victims, or a criminal record for Zhao. These constraints continue to limit Binance’s activities within the United States market.

Guillén concluded that while the pardon resolved the accusations against Zhao personally, the broader consequences have significantly impacted both him and the exchange. She noted that the United States has effectively lost access to the liquidity and opportunities provided by hosting one of the world’s largest cryptocurrency platforms. This outcome represents a substantial opportunity cost for the U.S. financial ecosystem, particularly as global crypto adoption continues to accelerate.

Throughout the legal ordeal, Guillén praised Zhao for maintaining composure and positivity despite intense media scrutiny and public criticism. His calm demeanor throughout the process stands in contrast to the heated rhetoric surrounding his case, reflecting the complex intersection of emerging technology, financial regulation, and political dynamics that continues to shape the cryptocurrency landscape.