https://www.crowdfundinsider.com/2025/11/255230-binance-founder-considers-legal-remedies-after-senator-elizabeth-warren-issues-misleading-statements-following-czs-presidential-pardon/

Binance founder and former CEO of the crypto exchange, Changpeng “CZ” Zhao is considering a lawsuit against US Senator Elizabeth Warren for alleged defamation, potentially further escalating an argument that was made following the crypto billionaire’s residential pardon. The development has surfaced after the Massachusetts Democrat accused the Web3 entrepreneur of engaging in money laundering in a social media post. As other crypto industry participants have now also clarified, Warrner’s inaccurate claim has now led to CZ’s legal team asserting that these statements are not only false but also damaging.

The ongoing dispute started soon following US President Donald Trump pardon of Zhao issued this past month, effectively wiping clean any other penalties from his 2023 plea deal that had been made with the U.S. Department of Justice (under the previous Biden Administration).

Notably, Changpeng Zhao, who has a net worth of around $100 billion, had served an unprecedented 4-month prison term and was required to pay a substantial $50 million penalty. This came after CZ had made the decision to plead guilty to violating the Bank Secrecy Act, but to be clear, his admission was not for actually engaging in money laundering itself.

The Binance founder did plead guilty only to failing to implement a proper anti-money laundering program while leading operations at Binance.

Warren noted via X that CZ had pleaded guilty to “a criminal money laundering charge and was sentenced to prison.” She added that he had also financed President Trump’s stablecoin and “lobbied for a pardon.” Warren also mentioned that recently, he got what he had requested. And that now, should Congress not stop this kind of corruption, then it would have to end up owning it.

However, Warren’s statements were heavily criticized by legal professionals and extensively fact-checked. X even included a “readers added context” update that made it clear that Zhao had not actually pleaded guilty to committing money laundering.

To be clear, the Binance founder only acknowledged the occurrence of certain compliance failures as outlined in the applicable Bank Secrecy Act. This is actually a technical violation that does not come with charges of willful fraud or any illicit money laundering activities.

Zhao’s attorney, Teresa Goody Guillen, shared that her client is now getting ready to issue a formal demand for Warren to take back her issued statements.

Guillen stated that Changpeng Zhao will “not remain silent while a United States Senator seemingly misuses the office to repeatedly publish defamatory statements that impugn his reputation.”

She also mentioned that should Senator Warren not move forward with a retraction, then Zhao has the right to look into various legal actions.