Sen. Elizabeth Warren’s lawyers have rejected Binance founder Changpeng Zhao’s defamation threat, calling any potential claim “without merit.” In a letter dated November 3, 2025, attorney Ben Stafford said Warren’s social media post relied on public records and was protected speech under U.S. law.
The dispute began after Warren posted on X about Zhao’s past legal and regulatory issues, citing official filings and enforcement documents. Zhao, who recently stepped down as Binance’s chief executive following a multi-billion-dollar settlement with U.S. authorities, interpreted her remarks as defamatory and hinted at legal action.
A lawyer for Zhao, widely known as CZ, had earlier warned that the senator’s post was “defamatory”. In response, Stafford wrote, “Simply put, any threatened defamation claim would be without merit.”
Warren, a senior Democrat on the Senate Banking Committee, has long been a vocal critic of the crypto industry. She frequently challenges what she calls weak regulatory oversight, particularly during the Trump administration’s push to deregulate the $4 trillion digital-asset market.
Public Records Form the Core of Warren’s Defense
According to The New York Post, Zhao spent four months in jail, paid a $50 million fine, and resigned from Binance after pleading guilty to “failing to maintain an effective anti-money-laundering program,” in violation of the Bank Secrecy Act. The Department of Justice described the plea as a major enforcement milestone against crypto compliance violations.
Zhao’s legal troubles culminated in a presidential pardon last Thursday. The Post reported that President Donald Trump viewed Zhao as a target of “overzealous prosecutors” in what he considered an aggressive crackdown on the crypto sector under the Biden administration.
The decision to pardon Zhao drew immediate criticism from the political sphere. Rep. Maxine Waters, the top Democrat on the House Financial Services Committee, condemned it, saying the move sends “a dangerous and reckless message to white-collar criminals and the entire cryptocurrency industry.”
Soon after the pardon news broke, Warren posted on X: “CZ pleaded guilty to a criminal money laundering charge and was sentenced to prison. But then he financed President Trump’s stablecoin and lobbied for a pardon.” She added, “If Congress does not stop this kind of corruption, it owns it.”
Her lawyers maintain that the senator’s post represented fair comment on matters of public concern. Stafford’s letter to Zhao’s legal team stated that the remarks were “based entirely on official filings and public enforcement documents” and therefore qualified as protected speech.
Legal Implications and Political Tension
If Zhao proceeds with legal action, the case could test how courts interpret statements referencing public records and what threshold of “actual malice” applies when a public figure is involved. Warren’s legal position rests on the principle that her statement reflects verified facts and did not distort them.
The friction that has been ongoing between crypto executives and Washington policymakers is still getting worse. Among the most vocal supporters of the introduction of stricter anti-money-laundering measures in digital transactions is Warren. At the same time, Zhao, who is still trying to clear his name after serving his time and paying his dues, has become a key player in the worldwide crypto discussion.