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    Binance CZ to Sue Senator Warren Over “False Money Laundering” Claims

    Story Highlights
    • Binance CEO CZ plans defamation lawsuit against Senator Warren over alleged false money laundering claims.

    • CZ demands Warren publicly retract statements linking him to criminal activity or face legal action.

    • Experts note defamation lawsuits against senators are difficult due to immunity and proving actual malice.

    After weeks of political heat surrounding Donald Trump’s crypto-linked pardons, a new storm is brewing, this time between Binance founder Changpeng Zhao (CZ) and U.S. Senator Elizabeth Warren.

    CZ has confirmed plans to file a defamation lawsuit against the senator, accusing her of spreading “false statements” regarding money laundering charges that never existed.

    CZ Strikes Back at Senator Warren

    In a post shared on X, CZ stated he will sue Elizabeth Warren if she doesn’t publicly retract her remarks linking him to criminal money laundering. 

    Through his attorney Teresa Goody Guillen, CZ has prepared a formal letter demanding an immediate retraction of Warren’s statements. The letter warns that failure to comply will result in the filing of a defamation lawsuit. 

    CZ’s camp maintains that the senator’s characterization misrepresents the facts and ignores the compliance nature of CZ’s legal issues rather than criminal wrongdoing.

    Background of the Dispute

    The controversy began with Senator Warren’s public remarks following a presidential pardon granted to CZ by former President Donald Trump. The pardon, issued last week, cleared CZ of legal penalties tied to a 2023 plea agreement over compliance failures linked to the Bank Secrecy Act. 

    The Department of Justice found no evidence of money laundering or fraud, but CZ faced penalties and stepped down as Binance CEO amid regulatory scrutiny.

    Perhaps Senator Warren accused CZ on social media of being a “convicted felon seeking a pardon” with trump crypto ties. Although these allegations have been vigorously denied by CZ and his legal team, who argue that the claims are false, defamatory, and intended to unfairly tarnish his standing in the crypto community.

    “War on Crypto” Intensifies

    CZ’s response fuels the ongoing clash between crypto innovators and Washington regulators, accusing Warren, former SEC Chair Gary Gensler, and others of backing failed FTX founder Sam Bankman-Fried while unfairly targeting Binance.

    Altough, some legal experts note defamation suits against senators are difficult due to immunity and the high standard of proving “actual malice.” The case may depend on whether Warren knowingly spread false claims or if her comments are protected political speech.

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    FAQs

    Why is Binance founder CZ planning to sue Senator Elizabeth Warren?

    CZ says Warren made false claims linking him to money laundering, and he’s demanding a public retraction or plans to file a defamation lawsuit.

    What did Elizabeth Warren say about CZ and Binance?

    Warren reportedly called CZ a “convicted felon seeking a pardon,” which his legal team says is misleading and harms his reputation.

    Can CZ legally sue a U.S. senator for defamation?

    It’s difficult but possible. Senators often have immunity for political speech, so CZ must prove Warren knowingly spread false statements.

    How does this lawsuit affect the crypto industry?

    The clash highlights growing tension between crypto leaders and U.S. regulators, shaping future debates over digital asset policies and accountability.

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