Elizabeth Warren’s Lawyer Denies Defamation Allegations Against Binance Founder Changpeng Zhao
A lawyer for US Senator Elizabeth Warren has denied allegations that she defamed Binance founder Changpeng Zhao in a social media post after US President Donald Trump pardoned him. The New York Post reported that Zhao’s lawyer, Teresa Goody Guillén, threatened to sue Warren for “defamatory statements that impugn his reputation” unless she removed an Oct. 23 post that cited “corruption” in Trump’s pardon of Zhao.
Warren’s attorney, Ben Stafford, argued that any threatened defamation suit would be without merit because the law that Zhao has pleaded guilty to violating is an anti-money laundering statute. Stafford stated that “a public figure like Mr. Zhao cannot prevail in a defamation lawsuit without providing evidence that the defendant had actual intent to publish a false statement of fact.”
Background on the Case
Zhao pleaded guilty in November 2023 to failing to maintain an effective anti-money laundering program at Binance in violation of the Bank Secrecy Act, and a federal court in Seattle sentenced him to four months in prison in April 2024. Warren’s X post received a so-called “community note,” a crowdsourced commentary outlining Zhao’s guilty plea. 
The Wall Street Journal and Bloomberg have reported that Binance helped create World Liberty’s USD1 stablecoin. The stablecoin was also used in a $2 billion deal for Emirati state investment firm MGX to buy a stake in Binance in March. Politico reported on October 25 that Zhao’s pardon came after Binance and his legal team launched a costly, months-long attempt to win over key figures in Trump’s orbit.
Demands for Retraction and Concerns Over Trump’s Crypto Pardons
Zhao’s attorney, Goody Guillén, said in the letter that he “will not remain silent while a U.S. senator appears to abuse his office to repeatedly publish defamatory statements that jeopardize his reputation.” The letter asked Warren to retract her statements. Stafford argued that Warren’s post does not state – and should not be construed – that Zhao has pleaded guilty to any other money laundering charge.
Trump’s crypto pardons have raised ethical and corruption concerns. The situation has sparked debate about the use of presidential pardons and their potential impact on the cryptocurrency industry. For more information, visit Cointelegraph.
