- Binance founder Changpeng Zhao is considering filing a lawsuit against Democratic Senator Elizabeth Warren for her defamatory statements alleging that he was guilty of money laundering.
- Warren mounted these allegations on CZ as part of her critique against President Donald Trump’s pardon of the crypto visionary last week.
- CZ’s legal team maintained there was no money laundering conviction, while putting forward the premises for the intended lawsuit under the constitution.
Binance Founder Changpeng “CZ” Zhao could sue ranking member in the US Congress, Senator Elizabeth Warren, over allegations of defamation against the Binance stakeholder. The recent brawl with Warren began last week after President Trump pardoned the crypto mogul for an “unfair” conviction that cost CZ four months in jail.
Brief Background
On October 21, the Office of the US Pardon Attorney recorded CZ’s presidential pardon over a failure to maintain standard anti-money-laundering procedures on Binance, which in turn led to the passage of illicit funds from terrorist organizations and other sanctioned individuals and institutions.
While the gesture was praised by fellow crypto entrepreneurs, the industry, and beyond, Democratic lawmakers were clearly highly critical of it, with Warren and Rep Maxine Waters being the most prominent critics.
Waters discredited the clemency grant based on allegations that the Binance founder lobbied his way into it by serving the interests of the Trump family’s crypto company. She further referred to the pardon as a “blatant payoff” from the presidency.
Similarly, Warren’s major emphasis was that “CZ pleaded guilty to a money laundering charge.” This unfounded allegation from the Congresswoman is the second most controversial critique against CZ’s pardon and the reason for the planned lawsuit.
CZ’s Lawyer Speaks Up
A swift, but informal legal warning followed from CZ’s Counsel Teresa Goody Guillen to Senator Warren, citing Hutchinson v. Proxmire (1979) to establish that Warren’s defamatory remarks are not protected by the congressional immunity clause. She pointed out that the “Clause does not protect the transmittal of allegedly defamatory material in press releases and newsletters,” which in this case centers around the lawmaker’s money laundering claims.
Guillen further stressed that the congressional immunity clause will likely not protect Warren from “obstructing pardons or justice.” These warnings came in response to Warren’s public efforts to build opposition in the Senate against the pardon.
“CZ is the first and only known first-time offender in U.S. history to receive a prison sentence for this single, non-fraud-related charge,” said Guillen. “The judge found NO evidence that he knew of any illicit transactions and that it was reasonable for him to believe there were no illicit funds on the platform.”
The pardon, she added, was for a “single charge” related to failure to implement an effective compliance system. “NO fraud, NO victims, NO criminal history. NO money laundering.”
Warren herself has a longstanding reputation for promoting anti-crypto industry activity and legislation in Congress. It is uncertain whether her attacks at the CZ pardon are motivated by her negative stance on crypto
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