The controversial pardon of Changpeng "CZ" Zhao, former CEO of Binance, by U.S. President Donald Trump, did not come without significant behind-the-scenes maneuvering. This executive clemency followed a substantial and meticulously orchestrated lobbying campaign, revealing the potent influence of financial investment in navigating the corridors of power.
A Strategic Campaign for Executive Clemency
CZ, who previously served a four-month prison sentence for violating U.S. anti-money laundering (AML) laws, became the beneficiary of a multi-month, high-cost effort by Binance and his legal team. The strategy involved securing key figures within Trump's inner circle. Notably, in September, Binance engaged Ches McDowell's firm, Checkmate Government Relations, a close associate of Donald Trump Jr., specifically to lobby the White House and Treasury Department for an "executive pardon," reportedly paying $450,000 for just one month of work. Furthermore, shortly after Trump's inauguration, Binance and Zhao enlisted Teresa Goody Guillén, a crypto lawyer once considered for the SEC chair under the Trump administration, whose firm subsequently earned $290,000 from the duo this year.
Financial Influence and Political Fallout
These recent lobbying endeavors build upon prior significant expenditures, including over $1 million spent in 2022 and an additional $860,000 this year under the Trump administration. The company also expanded its reach through partnerships, including one with the Trump-linked firm World Liberty Financial. The pardon, however, has drawn sharp criticism, with U.S. Representative Maxine Waters condemning it as "a massive favor for crypto criminals" and "appalling but not surprising," citing Zhao's guilty plea for AML violations. Waters further alleged a connection between the lobbying, the pardon, and the diversion of billions to Trump's personal crypto enterprise. Conversely, Trump defended his decision, claiming Zhao was "persecuted by the Biden administration" and that his actions were "not even a crime," a statement that stands in direct contrast to Zhao's federal conviction.
