Changpeng “CZ” Zhao’s lawyer has formally requested that Senator Elizabeth Warren issue a correction regarding public statements made about her client’s criminal record and a potential presidential pardon. The letter, dated October 28 and reviewed by media outlets, asserts that Warren’s social media claims contain “objectively false and defamatory” content. Teresa Goody Guillén, who represents Zhao and is a partner at BakerHostetler, contends that the senator inaccurately described the nature of Zhao’s guilty plea and suggested improper conduct connected to Donald Trump’s pardon.
Senator Warren had previously stated that Zhao “pleaded guilty to a criminal money laundering charge” and implied a link between his pardon and his alleged support for Trump’s World Liberty Financial venture. Guillén’s letter refutes this, clarifying that Zhao admitted guilt solely to a single regulatory violation—specifically, failing to maintain adequate anti-money laundering controls—and not to a criminal money laundering offense.
This distinction is significant due to the differing legal and reputational implications of criminal charges versus regulatory violations. Zhao resigned as Binance CEO, paid a personal fine, and served a brief prison sentence as part of a broader $4.3 billion settlement reached with U.S. authorities.
Dispute Centers on Legal Definitions and Public Record
On November 2, Warren’s legal team responded to the retraction demand, rejecting it. Attorney Ben Stafford stated that her remarks were based on public court documents and widely reported facts. He further noted that the Bank Secrecy Act, which Zhao violated, is an integral part of U.S. anti-money laundering law, thus supporting the factual basis of Warren’s characterization. This exchange underscores how technical legal distinctions can become blurred in public discourse, even when statements originate from official records.
According to a report shared by Scott Melker, the situation appears to be progressing favorably for CZ.
Zhao’s legal representatives maintain that the reputational damage caused by the senator’s statements necessitates a correction. Warren’s office, conversely, asserts that her remarks are protected speech. This disagreement arises amid increased scrutiny of cryptocurrency’s influence on U.S. political finance and the practices surrounding executive clemency. While no lawsuit has been initiated, Zhao’s legal team has indicated that all avenues remain under consideration.
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