TLDR
- Elizabeth Warren’s lawyer rejected defamation threats from Binance founder Changpeng Zhao over her social media post about his pardon.
- Zhao’s attorney demanded Warren retract her October 23 post that referenced corruption in Trump’s pardon or face legal action.
- Warren’s lawyer Ben Stafford argued the statements are factually accurate and therefore cannot be defamatory under law.
- Zhao pleaded guilty in November 2023 to failing to maintain an effective Anti-Money Laundering program at Binance.
- Warren’s post stated Zhao pleaded guilty to criminal money laundering charges and was sentenced to prison.
Elizabeth Warren’s legal team has rejected defamation threats from Binance founder Changpeng Zhao over social media posts about his presidential pardon. Her lawyer argues the statements are factually accurate and protected under defamation law. The dispute centers on Warren’s characterization of Zhao’s criminal conviction and subsequent pardon by President Trump.
Elizabeth Warren’s Legal Team Defends Social Media Post
Elizabeth Warren’s attorney Ben Stafford sent a letter dismissing Zhao’s threatened lawsuit on Sunday. The letter states that any defamation claim would lack merit under applicable law. Stafford secured his position through Punchbowl News, where he reported on legal correspondence.
Zhao’s lawyer, Teresa Goody Guillén, had demanded Warren retract her October 23 social media post. The post discussed Trump’s pardon of Zhao, referencing concerns about corruption. Goody Guillén claimed the statements damaged Zhao’s reputation and warranted legal action.
The New York Post reported Tuesday that Zhao’s legal team issued the threat. The letter requested the removal of the post, or Zhao would pursue available remedies. It also targeted a Senate resolution Warren introduced to denounce the pardon.
Details of Zhao’s Criminal Case
Zhao pleaded guilty in November 2023 to violating the Bank Secrecy Act. He admitted failing to maintain an effective Anti-Money Laundering program at Binance. A Seattle federal court sentenced him to four months in prison in April 2024.
Elizabeth Warren stated in her post that Zhao pleaded guilty to criminal money laundering charges. Zhao responded online days later, claiming there were no money laundering charges against him. His legal team now argues this characterization was false and defamatory.
Stafford’s letter clarifies that Zhao violated the anti-money laundering law through his guilty plea; the law that Zhao admitted breaking falls under anti-money laundering statutes. Therefore, Warren’s statement accurately reflects the nature of his conviction.
Pardon Connections and World Liberty Financial
Elizabeth Warren’s post also mentioned Zhao’s involvement with Trump’s cryptocurrency ventures and efforts to lobby for pardons. She stated he financed President Trump’s stablecoin and sought executive clemency. The post connected these activities to raise concerns about potential corruption.
The Wall Street Journal and Bloomberg reported Binance helped create World Liberty Financial’s stablecoin USD1. This stablecoin facilitated a $2 billion deal in March between Binance and MGX. MGX is an Emirati state-owned investment firm that acquired a stake in Binance.
Politico reported on October 25 that Zhao’s pardon followed extensive lobbying efforts by Binance. The company and its legal team spent months cultivating relationships with key figures in the Trump administration. These efforts preceded the October 23 announcement of the pardon.
Legal Standards for Public Figure Defamation
Stafford’s letter emphasizes that public figures face higher burdens of proof in defamation claims than private citizens. Zhao must prove Warren published false statements with actual malice to prevail. The letter argues Warren’s statements are factual and based on public records.
Elizabeth Warren’s post referenced widely reported facts about Zhao’s case and business dealings. Her attorney states the post accurately represented publicly available information. The statements cannot constitute defamation if they are truthful under legal standards.
The letter notes that Warren’s post does not claim Zhao pleaded guilty to other money laundering charges. It simply references his violation of the anti-money laundering law, as acknowledged through his guilty plea. This distinction forms the basis of the legal defense.
Goody Guillén stated Zhao will not remain silent while Elizabeth Warren publishes allegedly defamatory statements. She argued Warren misused her Senate office to damage his reputation. The letter demands retraction of both the social media post and the Senate resolution.
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