Former Binance CEO Changpeng Zhao (CZ) is reportedly preparing to sue Senator Elizabeth Warren for libel, alleging she made false and defamatory statements about his criminal record following his October 23, 2025, pardon by President Donald Trump.
According to sources close to the matter, Zhao’s legal team has drafted a letter demanding that Warren issue a formal public retraction, or face a lawsuit. The dispute centers on a post Warren made on X, which Zhao claims misrepresented the nature of his plea agreement with U.S. authorities.
Background: From Pardon to Political Controversy
The conflict began when Senator Warren criticized President Trump’s decision to pardon Zhao, alleging that the move reflected “corruption between Trump’s crypto donors and federal policy.” In her statement, Warren claimed that CZ had “pleaded guilty to a criminal money-laundering charge.”
However, legal documents from the U.S. Department of Justice contradict that description. Zhao pleaded guilty in 2023 to a single count of violating the Bank Secrecy Act (BSA), specifically, failing to maintain an effective anti-money-laundering compliance program during his tenure at Binance. The charge was classified as a regulatory offense, not a criminal money-laundering conviction.
CZ’s lawyers argue that Warren’s statement “falsely characterizes the nature of the plea and implies criminal intent where none was admitted,” adding that the remarks have caused “significant reputational harm” to Zhao and his business ventures.
Legal Team Challenges Warren’s Immunity
According to the information, Zhao’s attorneys assert that Warren’s remarks are not protected under the Speech or Debate Clause, which grants U.S. lawmakers legal immunity for statements made within the scope of legislative duties. Since the comments were posted publicly on X, Zhao’s team argues they constitute personal speech, not legislative conduct, and therefore fall outside congressional protection.
The letter reportedly warns that if a retraction is not issued, Zhao intends to pursue civil litigation for libel in federal court.
Broader Implications
This potential lawsuit comes amid an escalating clash between pro-crypto and anti-crypto factions in Washington. Senator Warren has been one of the most vocal critics of digital asset firms, calling for tighter oversight and stricter anti-money-laundering enforcement across the industry.
In contrast, Zhao, who was pardoned by President Trump as part of the administration’s push to “rebuild America’s crypto leadership”, has sought to recast himself as a compliance advocate and investor in blockchain innovation.
If filed, this case could mark the first high-profile defamation lawsuit between a crypto executive and a sitting U.S. senator, potentially testing the boundaries of free speech and political accountability in the age of digital finance.