Elizabeth Warren Refuses to Back Down Amid Defamation Threat from Binance Founder
US Senator Elizabeth Warren’s X Post Sparks Defamation Claim Threat from Binance Founder Changpeng Zhao
A lawyer for US Senator Elizabeth Warren has fired back at allegations that she defamed Binance founder Changpeng Zhao in a social media post following US President Donald Trump’s pardon of him. The New York Post reported on Tuesday that Zhao’s lawyer, Teresa Goody Guillén, threatened to sue Warren for "defamatory statements that impugn his reputation" unless she removed an Oct. 23 X post that cited "corruption" in Trump’s pardon of Zhao that same day.
Warren’s lawyer, Ben Stafford, responded with a letter on Sunday obtained by Punchbowl News, arguing that "any threatened defamation claim would be without merit," as the law Zhao "pled guilty to violating is an anti-money laundering law." Warren stated in her X post that Zhao "pleaded guilty to a criminal money laundering charge and was sentenced to prison," whichZhao rebuffed online days later,saying "there were NO money laundering[charges]."
Warren’s Statement Needs Actual Malice
Zhao pleaded guilty in November 2023 to failing to maintain an effective Anti-Money Laundering program at Binance in violation of the Bank Secrecy Act, and a Seattle federal court sentenced him to four months in prison in April 2024. Warren’s X post asserted that Zhao "financed President Trump’s stablecoin and lobbied for a pardon," adding to criticismof Trump’s pardon due to ties between Binance and his family’s crypto venture, World Liberty Financial.
Warren’s X Post Was Given a Community Note
The community note outlining Zhao’s guilty plea provided additional context to the controversy surrounding Trump’s pardon. The Wall Street Journal and Bloomberghave reportedthat Binance helped create World Liberty’s stablecoin USD1, which was also used in a $2 billion deal for the Emirati state-owned investment firm MGX tobuy a stakein Binance in March.
Zhao’s Lawyer Responds with Retraction Request
Stafford argued that Warren’s X post "is true in all respects and therefore cannot be defamatory," and it "accurately represented publicly available and widely reported facts." He added, "A public figure such as Mr. Zhao cannot prevail on a defamation claim without presenting evidence that the defendant published a false statement of fact with actual malice."
However, Zhos lawyer, Goody Guillén, countered in her letter to the New York Post that she"will not remain silent while a United States Senator seemingly misuses"her office to publisdefamatory statements that impugn his reputation." The letter requested Warren’s retraction of statements in both her X post and a Senate resolution seeking to denounce Trump’s pardon of Zhao.
Legal Implications
Stafford, however, emphasized that Warren’s X post “simply references the fact that Mr. Zhao pled guilty to a violation of U.S. anti-money laundering law." He added that "Her X Post does not state — and should not be construed to state — that he pled guilty to any other money laundering charge."
Zhao’s Reputation at Stake
The controversy surrounding Trump’s pardon has escalated the scrutiny on Binance, with many critics accusing the company of using its connections to influence the pardon. As Zhao’s lawyer continues to push for a retraction of Warren’s X post, the public debate surrounding the issue will likely intensify.
Conclusion
At this point of time it is difficult to say whether the allegations against Senator Elizabeth Warren are justified. The facts as reported in Warren’s X post appear to be based on public information and Zhao’s own guilty plea. However, the fact that his lawyer has requested a retraction suggests that there may be more to this story than initially meets the eye.
