A lawyer for US Senator Elizabeth Warren has dismissed threats of a defamation lawsuit from Binance founder Changpeng “CZ” Zhao, arguing that her comments about his criminal case were accurate and backed by public record.
Key Takeaways:
Senator Elizabeth Warren’s lawyer dismissed Binance founder Changpeng Zhao’s defamation threat. Zhao’s team demanded a retraction after Warren linked his guilty plea to anti-money laundering violations. Warren’s attorney argued the post accurately described Zhao’s Bank Secrecy Act conviction and didn’t imply he was charged with direct money laundering.The dispute stems from an Oct. 23 post on X in which Warren criticized former President Donald Trump’s decision to pardon Zhao, describing the move as “corruption.”
Zhao’s attorney, Teresa Goody Guillén, responded with a legal threat, demanding the senator retract the post or face legal action for “defamatory statements that impugn his reputation.”
Warren’s Lawyer Dismisses CZ Defamation Threat, Says Her Statement Was Accurate
In a letter obtained by Punchbowl News, Warren’s attorney Ben Stafford rejected the accusations, saying, “Any threatened defamation claim would be without merit,” and noting that Zhao “pled guilty to violating an anti-money laundering law.”
Warren wrote on X that Zhao “pleaded guilty to a criminal money laundering charge and was sentenced to prison.”
Zhao disputed the characterization days later, saying there were “no money laundering charges.”
Zhao pleaded guilty in November 2023 to failing to maintain an effective Anti-Money Laundering program at Binance, a violation of the Bank Secrecy Act. He was sentenced to four months in prison in April 2024.
In the same post, Warren alleged that Zhao “financed President Trump’s stablecoin and lobbied for a pardon,” referencing Wall Street Journal and Bloomberg reports that Binance helped develop “USD1,” a stablecoin tied to Trump’s family venture, World Liberty Financial.
Stafford defended Warren’s comments as “true in all respects” and consistent with “publicly available and widely reported facts.”
He added that Zhao, as a public figure, could not succeed in a defamation case without proving “actual malice” — that is, proof Warren knowingly made false claims.
Meanwhile, Zhao’s attorney said her client “will not remain silent while a United States Senator misuses her office to publish defamatory statements.” The letter also demanded Warren retract parts of her Senate resolution condemning Trump’s pardon of Zhao.
Stafford rejected those demands, asserting that Warren’s post “simply references the fact that Mr. Zhao pled guilty to a violation of US anti-money laundering law” and did not imply he was convicted of money laundering itself.
Binance Eyes US Comeback After Trump Pardons Founder Changpeng Zhao
Binance is reportedly exploring ways to re-enter the US market following President Donald Trump’s pardon of founder Changpeng “CZ” Zhao, according to Bloomberg.
The exchange is weighing options such as merging its US affiliate with its global platform or allowing its main exchange to serve American users directly.
Zhao’s pardon, granted after his 2023 guilty plea for anti–money laundering violations, has reignited scrutiny amid Binance’s $2 billion deal with Trump’s family-backed crypto venture, World Liberty Financial.
The clemency removes prior legal barriers that had restricted his involvement in Binance operations.
Zhao, whose net worth stands at $61.4 billion, remains one of the most powerful figures in crypto, overseeing an ecosystem with $8.7 billion in on-chain assets.
The pardon comes as Trump continues to court the digital asset industry, with his family reportedly earning over $1 billion from crypto ventures.
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