A series of pardons and dropped investigations under Donald Trump's administration are raising concerns about a growing
leniency toward white-collar crime. While in 2023, U.S. prosecutors revealed that groups like ISIS, Al-Qaeda, Hamas, and
Palestinian Islamic Jihad had used Binance, the world's largest cryptocurrency exchange, to move funds, the founder,
Changpeng Zhao, saw his sentence erased by a Trump pardon.
Zhao, once celebrated as the 'king' of crypto, pleaded guilty to money laundering charges in 2024, and Binance was hit
with a record $4.3 billion penalty for enabling terrorist financing. The action was initially viewed as a triumph for
regulators, as well as the families of U.S. citizens killed on October 7th who are now pursuing legal action against
Binance, accusing it of actively courting terrorist organizations. Karoline Leavitt, the White House press secretary,
defended Trump's pardon by characterizing Zhao's crimes as victimless, echoing a familiar argument that downplays the
impact of corruption. However, terrorist groups rely on sophisticated financial networks, and the victims of violence
are also victims of the financial professionals who facilitate it. Zhao's pardon is seen as a signal of who stands to
gain during Trump's presidency.
This isn't an isolated incident. Trump's administration has shown a pattern of offering reprieves to white-collar
offenders, using presidential pardons as a primary tool. This approach contrasts sharply with previous administrations
that used this power more selectively. Even when it clashes with stated policy objectives, Trump has been ready to use
pardons. Despite claiming to combat drug trafficking, Trump pardoned Juan Orlando Hernandez, the former president of
Honduras. In 2024, an American court convicted Hernandez of smuggling around 400 tons of cocaine into the U.S. Hernandez
had become the center of a violent drug-trafficking operation, turning Honduras into a major transit point for drugs.
His initial conviction represented a major victory against narcotics networks, more significant than any potential
military action. Yet, Trump intervened, asserting that Hernandez had been treated unfairly, after Hernandez portrayed
himself as an ally on migration and security.
Charles Scott, a businessman found guilty of stock manipulation, and reality TV stars Julie and Todd Chrisley, convicted
of tax evasion, also received pardons. Furthermore, David Gentile, a private equity executive sentenced to seven years
for defrauding investors of $1.6 billion, had his sentence commuted shortly after entering prison. This decision was
particularly painful for the 10,000 victims, including elderly individuals who lost their life savings. Trump's pardons
extend beyond financial crimes, reaching into the political sphere. Alexander Sittenfeld, a former Cincinnati city
council member convicted of bribery, and Jeremy Hutchinson, an Arkansas legislator found guilty of accepting bribes,
were also pardoned. Even Henry Cuellar, a Texas representative accused of acting as a foreign agent, was pardoned,
sending a message to lawmakers that loyalty to Trump provides protection and signaling to foreign leaders that the U.S.
Pardons represent only one tactic. The Trump administration has also curtailed investigations into corporate misconduct.
Public Citizen, a consumer advocacy group, has documented numerous cases where enforcement actions against corporations
have been halted or dropped. Approximately a third of 480 corporations previously targeted in enforcement actions have
benefited from this shift. For instance, a felony case against Boeing, related to deadly crashes, was dropped after the
company donated to Trump's inauguration fund. Cases involving unregistered brokers, pharmaceutical price-fixing, and
factories endangering public health have similarly disappeared. Cryptocurrency has become a haven. Major crypto players
have seen investigations quietly shelved. Binance, along with founder Zhao, has found itself in the center of this
dynamic. Binance assisted Trump's crypto firm, potentially generating millions for the Trumps, before Zhao was pardoned.
These developments are raising concerns about the potential for another economic collapse.
While financial gain may be a motivator, Trump's support for white-collar criminals appears more extensive. Contributing
factors include a sense of grievance, a desire to consolidate power, and an ideological commitment to dismantling the
'administrative state.' Agencies like the SEC, FTC, and Consumer Financial Protection Bureau face reduced authority.
Even the Foreign Corrupt Practices Act is being undermined, and a shell company registry aimed at combating money
laundering has stalled. This approach threatens to destabilize the American economy and incentivize further crime,
potentially leading to ecological disasters, economic recessions, or terrorist attacks. Ultimately, the consequences of
this trend will affect everyone, dispelling the myth of victimless white-collar crime.