Former Binance chief seeks retraction from Senator Elizabeth Warren after claims tied to Trump pardon spark controversy
Former Binance CEO Changpeng “CZ” Zhao is reportedly considering a defamation lawsuit against U.S. Senator Elizabeth Warren, following her public statement linking him to alleged money laundering and political bribery. The move underscores rising tensions between crypto executives and U.S. lawmakers as Washington sharpens its scrutiny of digital assets.
According to sources familiar with the matter, Zhao’s legal counsel Teresa Goody Guillén, a partner at Baker & Hostetler, said the former exchange head will pursue litigation unless the senator retracts her Oct. 23 social media post. The post, shared after Donald Trump granted CZ a presidential pardon, accused him of “pleading guilty to a criminal money laundering charge.”
In reality, CZ pleaded guilty in 2023 to failing to maintain an adequate Anti-Money Laundering program at Binance, a civil violation under the Bank Secrecy Act — not a direct money laundering offense. He served a four-month prison sentence in 2024, concluding his case with U.S. authorities.
“Mr. Zhao will not remain silent while a U.S. senator uses her position to publish false and defamatory claims,” Guillén stated. “We request an immediate retraction of these statements both on social media and within any official resolution.”
Political Backlash Over Trump’s Pardon
The controversy erupted after Trump’s pardon drew criticism from multiple lawmakers, who questioned whether the decision was influenced by a $2 billion investment in Binance by an Abu Dhabi-based fund linked to USD1 stablecoin, a project associated with Trump’s business circle.
Senator Warren also alleged that CZ “financed Trump’s stablecoin,” calling the move an act of corruption — a claim CZ publicly denied, asserting that “there were no money laundering charges” and that Warren “can’t get her facts right.”
Pattern of Legal Pushback
This would not be the first time CZ pursued defamation claims. In 2022, he sued Bloomberg Businessweek’s Chinese edition for labeling Binance a “Ponzi scheme.” That case ended in 2024 with a formal apology and a charitable settlement.
CZ’s latest legal warning signals a broader shift — crypto leaders are increasingly willing to challenge political narratives they see as misleading or damaging to their reputation.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.