Former Binance chief Changpeng “CZ” Zhao secured a presidential pardon from Donald Trump after an aggressive lobbying drive that extended across Washington and cost the exchange hundreds of thousands of dollars, Politico reported Sunday. Zhao, who served a four-month prison sentence last year for violating U.S. Anti-Money Laundering laws, was backed by a campaign designed to appeal to senior figures close to the Trump administration.
The report said Binance and its legal team mounted a months-long effort to lobby the White House and Treasury Department for what filings described as “executive relief.” In September, Binance hired Ches McDowell, a political operative linked to Donald Trump Jr., and his North Carolina-based firm Checkmate Government Relations to spearhead the lobbying. Checkmate billed $450,000 for one month’s work, Politico said. The firm has earned $7.1 million in the past three months, making it one of Washington’s most lucrative newcomers.
Investor Takeaway
Binance’s push in Washington highlights how lobbying has become central to crypto’s survival strategy under shifting U.S. administrations.
Ex-SEC Candidate Among Binance’s Legal Hires
Following Trump’s inauguration, Binance and Zhao also retained Teresa Goody Guillén, a lawyer once considered for the SEC chair post during Trump’s first term. Her firm has received $290,000 from Binance and Zhao this year, according to the report. Goody Guillén has represented crypto companies in regulatory cases and is known for her close ties to former administration officials.
The hiring spree adds to Binance’s history of extensive lobbying. The exchange spent over $1 million on Washington outreach in 2022 but halted activity after its 2023 plea deal with the U.S. Department of Justice. Under the Trump administration, it has resumed efforts with fresh intensity, spending $860,000 this year alone, Politico noted. The company has also expanded its reach through partnerships with ventures aligned with Trump’s network, including World Liberty Financial, a new crypto firm linked to the former president’s business circle.
Trump Defends Pardon, Waters Criticizes
Trump defended the decision last week, saying Zhao “was persecuted by the Biden administration” and that “what he did is not even a crime.” The remarks came at a White House press conference in which Trump also praised crypto innovation as “the future of American finance.”
Democratic Representative Maxine Waters condemned the pardon, calling it “a massive favor for crypto criminals.” In a statement, Waters said Zhao’s guilty plea for AML violations disqualified him from clemency and accused the administration of “selling justice to the highest bidder.” Waters also alleged that the pardon followed “months of lobbying and funneling billions into Trump’s personal crypto company, World Liberty Financial,” though no documentation has confirmed the claim.
Investor Takeaway
The pardon could embolden other crypto executives facing U.S. scrutiny but may deepen the political divide over the industry’s influence in Washington.
Binance’s Washington Strategy Enters New Phase
With Zhao now free and pardoned, Binance’s U.S. strategy appears to be rebuilding its political network ahead of regulatory overhauls expected next year. Analysts say the firm’s renewed access to Trump’s administration could smooth policy discussions on stablecoins and cross-border payments, areas where Binance seeks expansion. Yet the move risks renewed backlash from lawmakers who see crypto lobbying as a vehicle for special treatment.
The next phase for Binance, insiders told Politico, will involve rebuilding its U.S. compliance division and strengthening ties with state regulators — an attempt to reestablish credibility after years of federal confrontation.