President Donald Trump’s pardon of Binance founder Changpeng Zhao is attracting significant attention. The pardon is reported to have followed an extensive and costly lobbying campaign in Washington orchestrated by Binance and its legal team. The cryptocurrency exchange allegedly engaged multiple lobbyists with ties to Trump’s inner circle.
Checkmate Earns $450,000 from Binance and Zhao
According to a Politico report from Sunday, Changpeng Zhao, the Binance founder who served four months in prison, is a beneficiary of several months of Binance-led efforts to influence key figures within Trump’s orbit. This included payments to Trump-linked lobbyists such as Ches McDowell and his North Carolina-based firm, Checkmate Government Relations.
McDowell was hired by Binance in September, and Checkmate reportedly received $450,000 for one month of service. The firm was tasked with lobbying the White House and the U.S. Department of the Treasury on policy matters concerning cryptocurrencies and “executive relief.” In the last three months, the company has generated over $7.1 million in revenue.
Goody Guillén Retained to Lobby for Binance Founder
Teresa Goody Guillén of BakerHostetler was among those who also lobbied on behalf of CZ. Guillén, a prominent crypto lawyer, was previously considered by Trump to lead the U.S. Securities and Exchange Commission (SEC). Zhao retained Guillén in February, and she lobbied for the Binance founder in her personal capacity.
The disclosure report indicated that Guillén played a limited role, and more recently, it was reported that there was no activity on Zhao’s behalf during the third quarter. Despite this, her firm earned $290,000 from Binance and Zhao this year. Other members of her team involved in the lobbying efforts include former U.S. Rep. Peter Roskam (R-Ill.) and former House Financial Services Committee chief counsel Kevin Edgar.
Biden Administration's "War on Cryptocurrency" Linked to CZ's Detainment
Regarding CZ's pardon from Trump, which has reportedly been in the works for some time, U.S. Senator Elizabeth Warren has labeled it a "kind of corruption." She referenced a Wall Street Journal report detailing the news of CZ's pardon, noting that he allegedly lobbied for the pardon by financing Trump's stablecoin project.
White House Press Secretary Karoline Leavitt, conversely, believes that Zhao's case is part of the Biden administration's broader "war on cryptocurrency."