Former Binance CEO Changpeng “CZ” Zhao’s pardon by US President Donald Trump followed an extensive and costly lobbying campaign in Washington.
Zhao, who served a four-month prison sentence last year for violating US Anti-Money Laundering (AML) laws, benefited from a months-long effort by Binance and its legal team to win over key figures in Trump’s orbit, according to a Sunday report by Politico.
In late September, Binance hired Ches McDowell, a close associate of Donald Trump Jr., and his North Carolina-based firm Checkmate Government Relations to lobby the White House and Treasury Department on “executive relief,” the report claimed.
Checkmate, one of Washington’s fastest-growing firms, received $450,000 for one month’s work. The firm has also generated $7.1 million in revenue during the last three months alone, according to Politico.
Binance and CZ Retained Legal Counsel with Ties to Trump Administration
In February, shortly after Trump’s inauguration, Binance and Zhao also retained Teresa Goody Guillén, a crypto lawyer once considered for the SEC chair role under Trump. Her firm has earned $290,000 from Binance and Zhao this year alone.
Binance’s latest lobbying efforts come as the company previously spent over $1 million on lobbying in 2022 before pausing operations following its 2023 plea deal, per the report.
This year, under the Trump administration, the company has already spent $860,000 on lobbying and expanded its presence through partnerships, including one with the Trump-linked World Liberty Financial venture.
Maxine Waters Criticizes Trump's Pardon of CZ
Last week, US Representative Maxine Waters condemned Trump’s pardon of CZ, calling it a “massive favor for crypto criminals.” Trump justified the decision by stating Zhao “was persecuted by the Biden administration” and that “what he did is not even a crime.”
Waters, however, called the move “appalling but unsurprising,” citing Zhao’s guilty plea to violating US money laundering laws. She alleged that Zhao’s pardon came after months of lobbying and “funneling billions into Trump’s personal crypto company, World Liberty Financial.”