Binance founder CZ plans defamation lawsuit against Senator Warren over false money laundering claims made on social media.
Binance founder Changpeng ‘CZ’ Zhao confirmed plans to file a defamation lawsuit against U.S. Senator Elizabeth Warren. The move comes after public comments made by Warren accusing him of criminal activities.
CZ stated that her claims were false and demanded a public retraction. The issue has sparked fresh debate over the role of crypto in U.S. politics.
CZ Responds to Warren’s Social Media Claims
CZ addressed the situation by reposting a statement on the X platform on October 29.
The post claimed that Senator Warren made false statements about his case and reputation. In her original message, Warren said that CZ pleaded guilty to money laundering and secured a pardon by supporting Trump.
Ooo Pocahontas got caught in a defamatory lie
President Trump pardoned CZ because the Biden regime weaponized the DOJ to go after his political enemies and enemies of the uniparty machine.
CZ wasn’t even charged money laundering, never mind convicted. He admitted guilt to one… https://t.co/5Ko5t7k5zp
— DC_Draino (@DC_Draino) October 27, 2025
Zhao responded by saying that he never faced money laundering charges. He said he pleaded guilty only to a Bank Secrecy Act violation. According to him, the claims made by Warren were inaccurate and misleading to the public.
He added that if Warren does not take back her statements, his legal team will move forward with a defamation lawsuit. CZ believes that public figures should not be allowed to spread false information without consequence.
Legal Team Asserts Protection Does Not Cover Social Media
Zhao has hired Teresa Goody Guillen, a former SEC attorney, to handle the case. She is preparing a legal letter requesting Senator Warren to retract her statements. If Warren ignores the request, the legal team plans to file the lawsuit without further delay.
CZ BITES BACK AT ELIZABETH WARREN
Fresh off Trump’s pardon, CZ’s reportedly considering suing Senator Warren for libel – after years of being one of her favorite crypto punching bags. 🥊
From Washington hearings to primetime headlines, Warren’s made CZ and Binance symbols of… pic.twitter.com/Zs0akINOBd
— CryptosRus (@CryptosR_Us) October 29, 2025
Experts say the U.S. Constitution’s Speech and Debate Clause does not protect statements made on social media. This clause generally protects lawmakers during official duties, not outside platforms. CZ’s lawyers believe this makes a defamation case legally sound.
Goody Guillen said Warren’s comments had serious effects and must be corrected. She also pointed out that such public remarks can harm reputations, especially when tied to legal matters.
Senators Push Back After Trump Pardons CZ
The controversy began shortly after former President Donald Trump pardoned CZ last week.
Following the pardon, Senator Warren criticized Trump’s decision and linked it to crypto-related lobbying. She also accused Zhao of using financial influence to escape legal penalties.
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.
Today, he got it.
If Congress does not stop this kind of corruption, it owns it. pic.twitter.com/NsWeaJcVeK
— Elizabeth Warren (@SenWarren) October 23, 2025
Along with Senators Adam Schiff and Jeff Merkley, Warren urged the Senate to officially condemn Trump’s decision. They issued a press release questioning the connection between Trump and the $2 billion Binance deal.
The statement also pointed to Trump’s support for a stablecoin backed by World Liberty Financial.
As a response, some lawmakers are proposing a new bill. The bill would ban elected officials from owning or launching cryptocurrencies. They are also calling for stronger rules on trading stocks while in office.
