- CZ plans defamation lawsuit against Senator Warren over money laundering claims.
- Trump’s pardon of CZ sparks Democratic push to condemn and tighten crypto rules.
- Experts say Congress immunity may not cover Warren’s social media remarks.
Binance founder Changpeng Zhao (CZ) has confirmed plans to pursue legal action against U.S. Senator Elizabeth Warren following her public remarks alleging he was involved in money laundering. On October 29, Zhao stated via X that his legal representatives would file a defamation lawsuit if the Massachusetts senator fails to retract what he described as “false statements.”
According to Zhao’s attorneys, led by former SEC official Teresa Goody Guillen, Senator Warren’s post on X misrepresented the nature of Zhao’s case. Her statement claimed that Zhao “pleaded guilty to a criminal money laundering charge” and that his pardon from President Donald Trump was the result of political influence linked to crypto lobbying. Zhao and his legal team argue that no money laundering charge was ever filed against him.
Trump’s Pardon and Legislative Fallout
The dispute follows Trump’s decision to pardon Zhao, who had previously pleaded guilty to a Bank Secrecy Act violation under the Biden administration. The move has drawn criticism from several Democratic lawmakers, including Senators Warren, Adam Schiff, and Jeff Merkley, who have urged the Senate to condemn the pardon formally.
In a press release issued by the Senate Banking Committee on October 28, the lawmakers alleged a connection between Trump’s family-backed company, World Liberty Financial, and a $2 billion stablecoin deal involving Binance. They also introduced a bill that would prohibit elected U.S. officials from owning, creating, or trading cryptocurrencies or individual stocks.
Speech and Debate Clause May Not Apply Online
Legal experts have noted that the Speech and Debate Clause, which shields members of Congress from lawsuits over legislative acts, may not extend to statements made on social media. Commentators, such as strategist Chuck Callesto, observed that the protection does not apply outside of official congressional proceedings, leaving room for potential litigation.
Zhao has maintained that his conviction was unrelated to money laundering and accused U.S. regulators and legislators of misrepresenting his case. He claimed that enforcement actions under the Biden administration were politically motivated and that Warren’s statements were part of a broader campaign against the cryptocurrency sector.
