Crypto: Trump's Pardon vs. Coinbase's Rise

Okay, so Trump says he doesn't know Changpeng Zhao (CZ), the Binance founder he pardoned. Right. Let's unpack this, because the data (and a little bit of history) suggests something more calculated is at play. It's not just about one pardon; it's a pattern.

First, the denial itself. Trump, on 60 Minutes, claimed ignorance of CZ, despite the latter's guilty plea for enabling money laundering. The White House spin? An "overly prosecuted case" and a "war on cryptocurrency" by the Biden administration. Karoline Leavitt, the Press Secretary, laid it on thick. It’s a classic deflection, but does the data support it? According to Trump, 'I don't know who he is,' says Trump after pardoning crypto tycoon.

Let’s look at the connections. CZ's companies have partnered with firms linked to Trump, including Dominari Holdings, where Trump's sons are advisors. Then there's the stablecoin launched by World Liberty Financial, used by an Abu Dhabi firm for a $2 billion investment in Binance. Two billion (that’s a lot of zeros). I find it hard to believe that Trump is completely unaware of these deals and people.

Crypto Pardons: A Growing Trend?

But here's where it gets interesting. CZ isn't the only crypto figure to receive Trump's favor. He previously halted a fraud case against Justin Sun, after Sun's investments in the Trump family's crypto firm. Plus, he pardoned the founders of BitMEX (money laundering charges, again) and Ross Ulbricht of Silk Road. This isn't a one-off; it's a portfolio.

The question is, what's the common thread? Is it a genuine belief in crypto freedom, as the White House claims? Or is it something else? I've looked at hundreds of these cases, and this level of concentrated pardons within a single sector is highly unusual. This isn’t just about “correcting overreach”; it’s about strategically aligning with a specific, and potentially lucrative, industry.

Coinbase, for example, seems to be playing the game differently. Brian Armstrong, the CEO, is positioning himself as a Silicon Valley leader, focusing on long-term vision and regulatory compliance. As Jeff John Roberts notes, Coinbase’s latest run places Brian Armstrong among the great leaders of Silicon Valley. Coinbase is diversifying beyond trading revenue and making money on services like stablecoins and staking. Armstrong has also taken some unpopular stances, like rejecting the "blockchain not Bitcoin" narrative.

The Price of Loyalty

So, here’s the contrast: Armstrong building a (relatively) clean and compliant crypto business, while Trump is seemingly embracing the more… chaotic side of the industry. CZ's Binance, despite its size, has faced numerous regulatory challenges. BitMEX founders, well, they were charged with facilitating money laundering. Ulbricht ran a dark web marketplace for drugs. These aren't exactly poster children for responsible finance.

Trump's actions raise a critical question: what's the long-term cost of these pardons? Does it signal a future administration that will prioritize crypto innovation at any cost, even if it means overlooking regulatory concerns and potential financial crimes? Or is it simply a transactional relationship, with favors exchanged for support (financial or otherwise)? The answer is likely some mix of both, but the data points towards a calculated strategy, not just random acts of kindness.

The lack of transparency here is deafening. Details on the decision-making process behind these pardons are scarce. We're left to speculate and connect the dots based on available information. And that, frankly, is not a good look for anyone involved.

Follow the Money

So, what's the real story? It's not about whether Trump knows CZ. It's about the pattern of pardons, the connections between Trump's circle and the crypto world, and the potential implications for the future of crypto regulation. The “I don’t know him” defense doesn’t hold up under scrutiny. It's a smokescreen. The data suggests a calculated bet on a volatile, but potentially very rewarding, industry.