Elizabeth Warren Faces Legal Threats After Criticizing Trump’s Pardon of CZ

Former Binance CEO Changpeng Zhao is challenging remarks made by Sen. Elizabeth Warren following his presidential pardon by Donald Trump, with his legal team demanding that the senator retract what they call “false and defamatory” statements.

In a letter sent this week to Warren, Teresa Goody Guillén, Zhao’s attorney and former SEC litigation counsel, accused the senator of “misusing her office” to damage Zhao’s reputation through a resolution filed after his pardon. The letter, obtained by The Block, calls for an immediate retraction and hints at potential legal action.

Dispute Over Post-Pardon Accusations

Zhao was pardoned last week after serving time for failing to maintain an effective anti–money laundering program – a 2023 charge that also saw Binance fined $4.3 billion and Zhao personally fined $50 million. Following the pardon, Warren criticized Trump’s decision on X, asserting that Zhao had pleaded guilty to a “criminal money laundering charge.”

In her letter to Congress, Warren also alleged that Zhao’s business ties to World Liberty Financial (WLF) – a DeFi project linked to the Trump camp – could have financially benefited the Trump family. Zhao’s lawyer called that claim “factually and economically unsound,” noting that MGX, an Abu Dhabi investment firm, used WLF’s USD1 stablecoin to finalize a $2 billion deal with Binance, not to enrich Trump.

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Legal Pressure Mounts

“Mr. Zhao will not remain silent while a United States senator repeatedly publishes defamatory statements,” Goody Guillén wrote, arguing that Warren’s allegations lacked any legal basis. She added that if holding the USD1 token constituted unlawful enrichment, “then every exchange listing that token would be guilty of the same offense.”

Fox News earlier reported that Zhao is considering a libel suit against Warren. Goody Guillén, now a partner at Baker & Hostetler LLP, was once a leading candidate to head the SEC, underscoring the seriousness of Zhao’s legal posture as he attempts to restore his public image.