Key Insights
- •Warren’s legal team confirms CZ pled guilty to a criminal charge under anti-money laundering law.
- •DOJ records and Zhao’s plea agreement show the offense was criminal, not merely regulatory.
- •Senator’s post followed her introduction of a resolution tied to oversight and legislative action.
Senator Elizabeth Warren’s legal counsel has responded to claims made on behalf of Binance founder Changpeng Zhao. The complaint centers on an October 23 post made by Senator Warren on X, which stated: "CZ pleaded guilty to a criminal money laundering charge and was sentenced to prison."
Zhao’s legal team argued the post was defamatory and misrepresented the nature of his plea. In reply, Warren’s lawyers said the statement is factually correct and based on public court records. They confirmed that all future correspondence should be directed to their office.
Court Records Confirm Criminal Guilty Plea
Warren’s counsel cited Zhao’s signed plea agreement, filed in federal court in November 2023. In that case, Zhao admitted to violating US anti-money laundering laws by failing to maintain a compliant program at Binance. The charge was filed under Title 31 of the US Code, which addresses criminal penalties under the Bank Secrecy Act.
The letter stated, "Mr. Zhao pled guilty to a criminal charge," rejecting the idea that his offense was regulatory in nature. It further noted that the charge carries criminal penalties and that civil violations fall under a separate statute.
DOJ Press Release and Public Statements Back Claim
The Department of Justice issued a press release on the day Zhao entered his plea. The release described his conduct as a violation of anti-money laundering and sanctions laws and confirmed the charges as criminal. It quoted DOJ officials who said Zhao "knowingly operated a financial platform without basic anti-money laundering safeguards."
Senator Warren’s legal team emphasized that her statement echoed this public record. They pointed out that Zhao received a prison sentence and that the government consistently described the case as criminal in nature.
Post Linked to Legislative Oversight
The social media post was made the same day Warren introduced a Senate resolution condemning Zhao’s pardon. The resolution referenced Zhao’s plea and described the offense using similar language to the DOJ.
Warren’s counsel said the statement was part of her role as a senator. The letter ends by encouraging the public to read Zhao’s plea agreement and other public records to understand the basis of her comments.