Changpeng Zhao Threatens to Sue Senator Elizabeth Warren Over False Money Laundering Claims

Binance founder Changpeng Zhao (CZ) has announced plans to file a defamation lawsuit against U.S. Senator Elizabeth Warren, accusing her of spreading false claims about his legal case. CZ confirmed on October 29 via X (formerly Twitter) that he would pursue legal action if Warren failed to retract her “false statements” linking him to money laundering.

Warren, a vocal critic of the crypto industry and a leading Democrat on the Senate Banking Committee, condemned former President Donald Trump’s decision to pardon CZ last week. In her post, Warren alleged that “CZ pleaded guilty to a criminal money laundering charge” and “financed Trump’s stablecoin,” calling the pardon “corruption.”

In response, CZ stated that he was never charged with money laundering, clarifying that his plea deal involved violations of the Bank Secrecy Act, not laundering offenses. He accused Warren of deliberately misrepresenting facts and pushing an anti-crypto agenda.

According to reports from the New York Post, CZ and Binance have hired Teresa Goody Guillen, a former SEC attorney, to demand a retraction from Warren. If the senator refuses, Guillen confirmed Zhao will proceed with a defamation lawsuit.

CZ also criticized Warren, SEC Chair Gary Gensler, and Representative Maxine Waters, calling them “supporters of Sam Bankman-Fried” and claiming they targeted him for political reasons. He argued that the Biden administration weaponized the DOJ to force his guilty plea and that Trump’s pardon corrected this injustice.

Meanwhile, Warren, along with Adam Schiff and Jeff Merkley, has led a Democratic push to condemn Trump’s pardon and introduce a bill banning U.S. lawmakers from owning or creating cryptocurrencies.