TLDR
- Changpeng Zhao is considering filing a defamation lawsuit against Senator Elizabeth Warren.
- The possible lawsuit concerns Warren’s social media post about Zhao’s 2023 plea deal and Trump’s pardon.
- Zhao’s team claims that Warren falsely stated he pleaded guilty to money laundering.
- The Department of Justice confirmed Zhao admitted to violating the Bank Secrecy Act only.
- He paid a $50 million fine and served four months in jail under a plea agreement.
Changpeng Zhao, the founder of Binance, is considering filing a libel lawsuit against Senator Elizabeth Warren of Massachusetts. The move comes after Warren posted a statement online accusing Zhao of financing Trump’s stablecoin and securing a pardon through lobbying.
Zhao’s legal team argues the senator falsely described his conviction and misrepresented the charges involved in his plea deal.
CZ Challenges Warren’s Statement on Criminal Charge
Changpeng Zhao did not plead guilty to money laundering, but to violating the Bank Secrecy Act, according to court documents. He agreed to pay a $50 million fine and serve a four-month jail term under the plea agreement.
The Department of Justice stated Zhao failed to maintain an effective anti-money laundering program while leading Binance.
Warren, however, posted on X that Zhao pleaded guilty to money laundering and received a pardon after financing Trump’s stablecoin. Zhao’s team argues this statement is misleading and harmful to his reputation.
Warren said Tuesday, “He plead guilty to violating the law,” when questioned by Fox Business ahead of her Senate resolution. Her office has not commented on the possible defamation lawsuit Zhao may pursue.
Trump’s Pardon Sparks Tension in Crypto Debate
President Donald Trump issued a pardon for Changpeng Zhao last Thursday, citing prosecutorial overreach. The decision came as Trump continues to promote crypto deregulation.
Critics argue Trump’s family stands to benefit through its expanding digital asset company, World Liberty Financial. Zhao’s associates deny any business relationship that would link his pardon to financial interests.
Senator Warren remains a vocal critic of crypto deregulation and Trump’s ties to the industry. Her tweet following the pardon accused Zhao of corruption and lobbying for personal gain.
Warren’s post received a correction from X’s community notes, clarifying Zhao’s plea did not include money laundering. The note explained that Zhao only admitted to lacking proper compliance controls under the Bank Secrecy Act.
Legal Experts Weigh in on Possible Lawsuit
Legal commentators argue Warren’s statement may not fall under congressional protection. Goody Guillen, writing on X, said,
“The Speech or Debate Clause does not protect social media posts.”
Guillen emphasized that public platforms like X are not covered by legislative immunity. Zhao’s legal team may use this in court if a lawsuit proceeds.
Great article @CGasparino! I may know something about this… 😉 I’m glad to see that Grok agreed with my assessment. https://t.co/X03MLrBnXh pic.twitter.com/RjHptZDTZB
— Teresa Goody Guillén (@teresagoody) October 29, 2025
Changpeng Zhao’s representatives maintain that the senator’s comments are defamatory and harm his standing in the crypto sector. The lawsuit would challenge public misstatements not protected under Senate floor privileges.
Zhao is still the largest shareholder in Binance, with a personal net worth estimated around $80 billion. He stepped down from the exchange as part of the plea agreement reached with the Department of Justice.
Ties Between Trump Stablecoin and Binance Questioned
People close to Changpeng Zhao deny links between Binance and Trump’s crypto ventures. They claim outside investors used World Liberty Financial’s stablecoin to purchase Binance assets.
These connections, they argue, are incidental and unrelated to Zhao’s dealings or legal proceedings. The claim counters Warren’s implication of a coordinated financial link.
Warren said, “He financed President Trump’s stablecoin and lobbied for a pardon.” Zhao’s team strongly denies both claims as false.
World Liberty Financial has not issued a public response to the senator’s allegations. Zhao’s lawyers believe a suit could establish the truth and clear his name.
Changpeng Zhao’s Conviction Based on Compliance Failures
According to the DOJ, Zhao failed to establish and implement effective compliance systems to prevent illegal financial transactions. He admitted to violating the Bank Secrecy Act but not to laundering funds.
This distinction was included in the DOJ’s press release and legal filings. Warren’s tweet did not make this difference clear, leading to backlash online.
Zhao’s defenders argue that the misstatement confuses the public and wrongly implies criminal intent. They view the post as damaging to his reputation after he has served his sentence.
