Key Takeaways
Why is CZ threatening to sue Elizabeth Warren?
He alleges that Warren made false claims on X about his criminal case, stating that he pleaded guilty to money laundering.
What are CZ’s lawyers demanding?
Through attorney Teresa Goody Guillen, CZ has asked Warren to retract her post or face an imminent defamation lawsuit.
Crypto tycoon Changpeng “CZ” Zhao is preparing to sue Sen. Elizabeth Warren for defamation over her characterization of his criminal case.
This marks a dramatic escalation in the Massachusetts Democrat’s long-running battle with the digital asset industry.
The rising tension follows CZ’s recent pardon by President Donald Trump, which saw different reactions.
The dispute over facts
According to a report from the New York Post, through his attorney Teresa Goody Guillen, Zhao is drafting a demand letter that calls on Warren to retract statements she made on X following President Trump’s pardon of the Binance founder last week.
Without a retraction, Zhao plans to file a defamation lawsuit “imminently,” according to the report.
The dispute centers on Warren’s 23 October post. She claimed, “CZ pleaded guilty to a criminal money laundering charge and was sentenced to prison.”
Source: X
However, Zhao pleaded guilty only to violating the Bank Secrecy Act for failing to maintain proper anti-money laundering controls—not to money laundering itself. X’s Community Notes feature flagged Warren’s post as inaccurate.
Warren’s crypto crusade
Warren, a senior member of the Senate Banking Committee, has emerged as one of crypto’s fiercest congressional critics.
Following Trump’s pardon, she and Sen. Adam Schiff introduced a resolution condemning the decision as “corruption.”
Legal questions ahead
The legal threat raises new questions about whether senators enjoy immunity for statements made on social media versus official congressional proceedings.
Goody Guillen argues the Speech or Debate Clause doesn’t extend to “false and misleading information” posted on platforms like X.
“Mr. Zhao will not remain silent while a United States Senator misuses the office to publish defamatory statements,” Goody Guillen wrote in the draft letter.
The background
Zhao served a four-month prison sentence and paid a $50 million fine as part of a $4.3 billion settlement between Binance and the Justice Department. He remains Binance’s largest shareholder.
The confrontation represents the latest clash between Warren’s regulatory oversight efforts and the crypto industry under the Trump administration’s deregulatory approach.
