Sen. Warren’s Lawyer Rejects CZ’s Defamation Threat, Says Her Post Was Factually Correct

A lawyer for US Senator Elizabeth Warren has dismissed threats of a defamation lawsuit from Binance founder Changpeng “CZ” Zhao, arguing that her feedback about his prison case had been correct and backed by public report.

The dispute stems from an Oct. 23 submit on X during which Warren criticized former President Donald Trump’s decision to pardon Zhao, describing the transfer as “corruption.”

Zhao’s lawyer, Teresa Goody Guillén, responded with a authorized risk, demanding the senator retract the submit or face authorized motion for “defamatory statements that impugn his repute.”

Warren’s Lawyer Dismisses CZ Defamation Threat, Says Her Statement Was Accurate

In a letter obtained by Punchbowl News, Warren’s lawyer Ben Stafford rejected the accusations, saying, “Any threatened defamation declare can be with out advantage,” and noting that Zhao “pled responsible to violating an anti-money laundering legislation.”

Warren wrote on X that Zhao “pleaded responsible to a prison cash laundering cost and was sentenced to jail.”

Zhao disputed the characterization days later, saying there have been “no cash laundering fees.”

Zhao pleaded responsible in November 2023 to failing to keep up an efficient Anti-Money Laundering program at Binance, a violation of the Bank Secrecy Act. He was sentenced to 4 months in jail in April 2024.

In the identical submit, Warren alleged that Zhao “financed President Trump’s stablecoin and lobbied for a pardon,” referencing Wall Street Journal and Bloomberg reviews that Binance helped develop “USD1,” a stablecoin tied to Trump’s household enterprise, World Liberty Financial.

Stafford defended Warren’s feedback as “true in all respects” and in keeping with “publicly out there and extensively reported details.”

He added that Zhao, as a public determine, couldn’t reach a defamation case with out proving “precise malice” — that’s, proof Warren knowingly made false claims.

Meanwhile, Zhao’s lawyer stated her consumer “won’t stay silent whereas a United States Senator misuses her workplace to publish defamatory statements.” The letter additionally demanded Warren retract components of her Senate decision condemning Trump’s pardon of Zhao.

Stafford rejected these calls for, asserting that Warren’s submit “merely references the truth that Mr. Zhao pled responsible to a violation of US anti-money laundering legislation” and didn’t indicate he was convicted of cash laundering itself.

Binance Eyes US Comeback After Trump Pardons Founder Changpeng Zhao

Binance is reportedly exploring ways to re-enter the US market following President Donald Trump’s pardon of founder Changpeng “CZ” Zhao, in keeping with Bloomberg.

The change is weighing choices equivalent to merging its US affiliate with its international platform or permitting its primary change to serve American customers instantly.

Zhao’s pardon, granted after his 2023 responsible plea for anti–cash laundering violations, has reignited scrutiny amid Binance’s $2 billion take care of Trump’s family-backed crypto enterprise, World Liberty Financial.

The clemency removes prior authorized boundaries that had restricted his involvement in Binance operations.

Zhao, whose internet value stands at $61.4 billion, stays some of the highly effective figures in crypto, overseeing an ecosystem with $8.7 billion in on-chain belongings.

The pardon comes as Trump continues to courtroom the digital asset business, together with his household reportedly earning over $1 billion from crypto ventures.

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