As government lobbying becomes a critical factor in the evolving landscape of cryptocurrency regulation, Binance founder Changpeng “CZ” Zhao’s recent pardon by U.S. President Donald Trump highlights the power of strategic political influence. After serving a four-month sentence for violations of U.S. anti-money laundering laws, Zhao was granted clemency following an intensive lobbying campaign that involved high-profile legal and political advocacy. This story illustrates how the interplay of crypto industry interests and government officials continues to shape the future of blockchain regulation and market legitimacy.
- •Changpeng Zhao, Binance founder, received a presidential pardon after serving time for AML violations.
- •The pardon followed a well-funded lobbying campaign targeting the White House and Treasury Department.
- •Binance engaged high-profile legal and political advisors to influence U.S. authorities, including paying hundreds of thousands to known political figures.
- •The move has stirred debate, with critics condemning the pardon as a favored act for crypto interests, while supporters claim Zhao was unfairly persecuted.
- •This case exemplifies the growing impact of lobbying and political influence in shaping crypto regulation and industry practices.
Former Binance CEO CZ’s Pardon and Lobbying Efforts
Changpeng “CZ” Zhao’s pardon by President Donald Trump comes after a controversial four-month prison sentence linked to his violation of U.S. anti-money laundering (AML) laws. According to reports, Zhao’s freedom was secured through an extensive and costly lobbying campaign in Washington, aimed at garnering political support and executive relief. Binance and its legal team worked diligently to win favor among key figures in Trump’s political circle, indicating a strategic effort to influence policy and regulatory outcomes.
Late last September, Binance hired Ches McDowell, a close associate of Donald Trump Jr., along with Checkmate Government Relations, a rapidly rising lobbying firm based in North Carolina. The firm was paid $450,000 in just one month for its efforts to sway White House and Treasury Department officials. Over the last three months, Checkmate accumulated revenue of approximately $7.1 million, highlighting the increasing importance of lobbying in crypto industry affairs.
Binance’s Broader Political Influence
In addition to the recent pardon, Binance paid $290,000 earlier this year to Teresa Goody Guillén, a prominent crypto lawyer who was once considered for the SEC chair role under Trump. Her firm’s work with Binance and Zhao is part of a larger strategy to influence regulatory decisions and shape favorable legal interpretations for the global crypto giant. This year alone, Binance has already spent over $860,000 on lobbying efforts, building on a precedent set in 2022 when the company invested more than $1 million in advocacy activities before halting operations amid ongoing legal scrutiny.
This year, Binance has also expanded its influence through partnerships with entities linked to Trump, including a notable collaboration with World Liberty Financial, reflecting an aggressive diplomatic push in the U.S. crypto market.
Criticism and Political Reaction
Last week, U.S. Representative Maxine Waters condemned the pardon, branding it a “massive favor for crypto criminals.” She pointed out that Zhao had previously pled guilty to violating U.S. money laundering laws and alleged that the pardon was the culmination of months of lobbying and financial influence, including billions funneled into Trump’s private crypto ventures.
Trump defended his decision, claiming Zhao “was persecuted by the Biden administration” and asserting that “what he did is not even a crime.” The political fallout underscores ongoing tensions over crypto regulation and the perception of favoritism in legal processes affecting cryptocurrency entrepreneurs.
This ongoing saga highlights the increasing role of lobbying, legal influence, and political connections in the fast-moving world of crypto markets, with implications for future regulation and industry transparency.