Binance founder Changpeng Zhao is contemplating legal action against U.S. Senator Elizabeth Warren after she made public statements alleging he was convicted of criminal money laundering and received a pardon through lobbying and financial support of Trump’s stablecoin venture. Zhao disputes these claims, maintaining that he was not convicted of money laundering, but instead pleaded guilty to violating the Bank Secrecy Act for compliance failures related to his role at Binance.

Following Trump’s recent pardon of Zhao, Warren criticized the move on social media, equating it with unchecked corruption and suggesting that Zhao improperly influenced the decision through lobbying and financial ties. In response, Zhao’s legal team, led by former SEC attorney Teresa Goody Guillen, has issued a formal request for Warren to retract her statements. The team argues that the senator’s remarks were factually incorrect and defamatory, causing damage to Zhao’s reputation.

This escalating dispute highlights the growing friction between leading figures in the cryptocurrency industry and U.S. legislators opposed to the sector’s influence. Zhao’s attorneys have stated that if Warren does not publicly retract her accusations, they will proceed with a defamation lawsuit—a rare move against a sitting senator. While Zhao faces substantial legal hurdles in suing a public official, his team contends that congressional legal immunities do not extend to social media posts and that proving actual malice will be central to their case.

Ultimately, Zhao’s threat marks a significant moment in the ongoing battle over the future of cryptocurrency regulation in the U.S., drawing attention to the high stakes and polarized opinions shaping the industry’s political landscape.

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