Binance BNB/USD co-founder Changpeng “CZ” Zhao is preparing to file a lawsuit against Sen. Elizabeth Warren (D-Mass.) for alleged defamation related to remarks she made about his conviction, according to a report released Tuesday.
CZ Asking Warren To Retract Social Media Post?
CZ’s lawyer, Teresa Goody Guillén, told the New York Post that the former Binance CEO is preparing a letter calling for Warren to retract a social media post in which she accused him of criminal money laundering and alleged that he obtained his pardon by funding President Donald Trump’s stable coin.
Without a formal retraction, Goody Guillen said CZ plans to file a defamation lawsuit imminently against the lawmaker.
CZ reshared the X post referencing the report, but did not officially confirm the news. Guillén quoted the post saying, “Great article.” Benzinga reached out to Binance PR for confirmation.
Warren took to X shortly after Trump’s pardon last week, saying, “CZ pleaded guilty to a criminal money laundering charge,” which drew a sharp reaction from the Binance founder.
“A U.S. Senator can’t get her facts right in a public post about a person’s charge. There were NO money laundering charges,” he said in response.
Users Add Community Note
CZ pleaded guilty to violating the Bank Secrecy Act, a law that requires financial institutions to help U.S. government agencies detect and prevent money laundering, in 2023. As part of the settlement, he paid a $50 million fine, stepped down as the company’s CEO and subsequently served four months in prison.
Users added a community note to Warren’s post, stating that CZ did not plead guity to money laundering.
A Political Firestorm
After granting the pardon, Trump said that he didn't know CZ personally and had never met him, but he was told by a "lot of people" that CZ didn't commit any crime and was "persecuted" by the Joe Biden administration.
Meanwhile, Warren, along with fellow Senator Adam Schiff (D-CA), has introduced a Senate resolution condemning Trump’s pardon. The two lawmakers allege that Binance’s involvement in a $2 billion investment through Trump family-backed World Liberty Financial USD (USD1) stablecoin, and Trump’s personal stake in the platform, represent “clear corruption and influence-peddling.”
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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
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