TL;DR
- CZ’s lawyer demands correction from Senator Elizabeth Warren.
- Warren linked Zhao’s pardon to support for Trump’s project.
- Zhao pleaded guilty only to a regulatory offense, not a criminal one.
Changpeng “CZ” Zhao’s lawyer sent a formal letter to Senator Elizabeth Warren demanding a retraction of public claims about his client’s criminal record and presidential pardon. The letter, dated October 28 and reviewed by media outlets, says Warren’s statements on social media contain “objectively false and defamatory” content. Teresa Goody Guillén, counsel for Zhao and a partner at BakerHostetler, argues the senator misrepresented the nature of Zhao’s guilty plea and implied improper conduct tied to Donald Trump’s pardon.
Warren had posted that Zhao “pleaded guilty to a criminal money laundering charge” and linked his pardon to his support for Trump’s World Liberty Financial venture. Guillén counters that Zhao admitted guilt only to a single regulatory violation—failing to maintain adequate anti-money laundering controls—not to a criminal money laundering offense.
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
The distinction matters because criminal charges carry heavier legal and reputational weight. Zhao stepped down as Binance CEO, paid a personal fine, and served a short prison term as part of a $4.3 billion settlement with U.S. authorities.
Dispute centers on legal definitions and public record
Warren’s legal team responded on November 2, rejecting the retraction demand. Attorney Ben Stafford wrote that her statements reflected public court documents and widely reported facts. He noted that the Bank Secrecy Act, which Zhao violated, is part of U.S. anti-money laundering law, making Warren’s characterization factually supportable. The exchange highlights how language in public discourse can blur technical legal distinctions, even when based on official records.
According to the report shared by Scott Melker, everything seems to be going well for CZ.
BREAKING: Leaked legal letters reveal @cz_binance’s attorney Teresa Goody Guillén (@Teresagoody) demanded Senator Elizabeth Warren retract what she called “objectively false and defamatory” statements about CZ’s pardon.
Warren’s lawyer has already replied. Both documents are… pic.twitter.com/hMHRyZ6ySO
— The Wolf Of All Streets (@scottmelker) November 6, 2025
Zhao’s camp insists the damage to his reputation warrants correction. Warren’s office maintains her remarks fall within protected speech. The disagreement unfolds against a backdrop of heightened scrutiny over cryptocurrency’s role in U.S. political finance and executive clemency practices. No lawsuit has been filed, but Zhao’s legal team says all options remain open.
