CZ Considers Libel Suit Against Warren Over Trump Pardon Claims

The controversy centers on Senator Warren’s October 23 social media post, which claimed Zhao “pleaded guilty to a criminal money laundering charge” and implied he secured his presidential pardon through bribery. According to a New York Post report, Zhao’s legal team has issued a clear ultimatum: either Warren retracts her statements or face a defamation lawsuit. Teresa Goody Guillén, the partner at Baker & Hostetler representing Zhao, confirmed the former Binance CEO’s intention to pursue legal action unless the Massachusetts senator withdraws what his team characterizes as completely unfounded allegations.

The legal standoff emerges against the backdrop of increasing congressional attention to Trump’s pardon of Zhao, with Warren’s comments drawing particular scrutiny from the former cryptocurrency executive. The social media post in question has since been updated to include reader context, but the original allegations continue to fuel the escalating conflict between one of the crypto industry’s most prominent figures and one of its most persistent congressional critics.

While Warren’s social media post referenced “criminal money laundering charges,” the actual legal record shows Zhao pleaded guilty to a single charge related to his failure to maintain an effective Anti-Money Laundering program at Binance in November 2023. This violation of the Bank Secrecy Act resulted in his four-month prison sentence in 2024, but notably did not involve money laundering charges as implied in the senator’s post. The distinction between failing to maintain adequate AML compliance and actual money laundering represents a crucial legal difference that Zhao’s legal team appears prepared to emphasize in any potential litigation.

The factual discrepancy between the actual court record and the political allegations highlights the complex intersection of legal technicalities and political rhetoric in the ongoing debate around cryptocurrency regulation. Zhao’s guilty plea and subsequent sentencing represented a significant moment for Binance and the broader crypto industry, but the characterization of those legal proceedings has become a new battleground in the conflict between industry leaders and regulatory advocates.

This potential lawsuit represents a significant escalation in the ongoing tension between cryptocurrency executives and their political opponents in the United States. Senator Warren has been one of the most vocal critics of the crypto industry, frequently raising concerns about consumer protection, financial stability, and regulatory compliance. The threat of legal action from a former industry leader like Zhao signals a new phase in this conflict, moving from political debate to potential courtroom confrontation.

The situation also reflects the continuing political fallout from Trump’s presidential pardon, which has drawn scrutiny from multiple quarters in Congress. As lawmakers examine the circumstances surrounding the pardon, the allegations and counter-allegations between Warren and Zhao have brought additional attention to the intersection of cryptocurrency, political influence, and executive clemency. The outcome of this dispute could set important precedents for how cryptocurrency industry figures engage with their political critics and defend their reputations against allegations they consider defamatory.

For Binance and the broader crypto ecosystem, the legal confrontation comes at a sensitive time as the industry continues to navigate complex regulatory landscapes in the United States and globally. The resolution of this dispute may influence how other crypto executives respond to political criticism and whether similar legal challenges become more common in the ongoing debate about cryptocurrency regulation and oversight.