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- CZ is preparing legal action against Warren over statements tied to Trump’s pardon.
- Warren accused him of laundering and influence dealing, while CZ insists the charges involved control failures only.
Binance founder Changpeng Zhao, known as CZ, confirmed plans to pursue a defamation case against Senator Elizabeth Warren over statements she made after President Donald Trump granted him a pardon. CZ said Warren spread false claims connected with his case.
Warren posted that CZ “pleaded guilty to a criminal money laundering charge” and gained a pardon after financing Trump’s stablecoin project. She described the action as corruption that Congress should stop. Warren stated,
He financed President Trump’s stable coin and lobbied for a pardon. Today, he got it. If Congress does not stop this kind of corruption, it owns it.
CZ pleaded guilty to a criminal money laundering charge and was sentenced to prison.
But then he financed President Trump’s stablecoin and lobbied for a pardon.
Today, he got it.
If Congress does not stop this kind of corruption, it owns it. pic.twitter.com/NsWeaJcVeK
— Elizabeth Warren (@SenWarren) October 23, 2025
The post came shortly after the pardon. However, Zhao rejected the accusation entirely and accused Warren of misrepresenting legal proceedings.
He pleaded guilty only to failing to maintain proper anti-money laundering controls under the Bank Secrecy Act. Legal documents did not list money laundering charges.
Zhao’s Attorney Responds
Former SEC attorney Teresa Goody Guillen now represents CZ in this matter. A demand letter is being drafted requesting that Warren retract her public remarks. The attorney explained that if the correction is not issued, a defamation lawsuit will follow.
Guillen has explained that speech protections for Senators do not extend to social media posts that may contain false claims. She wrote in a draft letter:
Mr. Zhao will not remain silent while a United States Senator misuses the office to publish defamatory statements.
CZ has also noted Warren’s long record of public criticism of cryptocurrency. He said she stated a plan to press for strong actions against crypto shortly before his sentencing took place under the Biden administration.
He served four months in prison and paid a $50 million fine. Binance also paid $4.3 billion in a settlement with the U.S. Department of Justice.
Democrats Seek Ban on Lawmakers’ Crypto Ownership
Following the pardon, Democratic senators, including Warren, Adam Schiff, and Jeff Merkley, urged a formal Senate vote condemning Trump for pardoning CZ. They pointed to the connection between Trump-backed World Liberty Financial’s USD1 stablecoin and a $2 billion deal linked to Binance.
Individuals familiar with CZ’s position stated that no personal or business relationship exists between CZ and Trump or Trump’s family network. Binance has never formed any formal partnership with World Liberty Financial. Any overlap came only from independent investors who used the stablecoin to trade assets on Binance platforms.
Meanwhile, reports indicate Democrats are pressing legislation to prohibit elected officials in the United States from owning or creating cryptocurrencies and trading stocks.
Even though CZ has stepped down from daily leadership, he still holds the largest share in Binance, and his total wealth is estimated to be around 80 billion dollars.
