Michaela
Changpeng “CZ” Zhao, the founder and former CEO of cryptocurrency exchange Binance, is reportedly considering filing a libel lawsuit against Massachusetts Senator Warren over social media statements alleging he bribed President Donald Trump in exchange for a pardon.
Key points:
- Changpeng “CZ” Zhao is reportedly preparing to sue Senator Warren for defamation over her claim that he bribed former President Donald Trump for a pardon.
- Zhao’s lawyer has demanded a formal retraction, warning that legal action will follow if the statements are not withdrawn.
- The dispute spotlights growing friction between U.S. lawmakers and crypto industry leaders amid ongoing debates over regulation and accountability.
According to the New York Post, Zhao’s attorney, Terese Goody Guillen, is reportedly drafting a letter demanding that Senator Elizabeth Warren issue a formal retraction of her statement. Should she decline to do so, Zhao is expected to move forward with a defamation lawsuit.
“Mr. Zhao will not remain silent while a United States Senator seemingly misuses the office to repeatedly publish defamatory statements that impugn his reputation,” Guillen reportedly wrote in a draft letter. “Accordingly, Mr. Zhao respectfully immediately requests the retraction of these false statements, both within the resolution and on X… Mr. Zhao reserves his right to pursue all legal remedies available to address these false statements,” she added.
In the statement at the center of the dispute, Senator Warren asserted that Zhao had pleaded guilty to a criminal money laundering charge and received a prison sentence, further claiming that he “financed President Trump’s stablecoin and lobbied for a pardon.”
Zhao responded to Senator Warren’s remarks by saying that she “can’t get her facts right,” emphasizing that he was never charged with money laundering. “The same Senator declared “war on crypto”, on public TV, 5 days before my sentencing, during the Biden Admin,” Zhao wrote.
In 2023, Zhao admitted guilt to a single charge for failing to implement an adequate Anti-Money Laundering program at Binance, in violation of the Bank Secrecy Act. He subsequently served a four-month prison sentence, paid a $50 million fine, and stepped down from his role as CEO of the exchange.
President Trump granted Zhao a pardon on October 23, a move that drew both praise and criticism from various sectors. During a press conference the next day, Trump said the decision was driven by widespread public support, adding that “a lot of people recommended” Zhao and that “people say he wasn’t guilty of anything.”
The dispute marks the latest flashpoint in the ongoing tension between policymakers and key figures in the crypto industry, as questions over accountability, regulation, and reputation continue to shape the sector’s evolving landscape.
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Michaela has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.
