TLDR
- Changpeng Zhao’s lawyer has sent a formal demand letter to Senator Elizabeth Warren requesting an immediate retraction of her statements.
- Teresa Goody Guillén accused Warren of publishing defamatory remarks that damaged her client’s reputation after President Trump issued the pardon.
- Fox News reported that Changpeng Zhao is considering filing a libel lawsuit against the senator over her post-pardon comments.
- Senator Warren claimed that Changpeng Zhao pleaded guilty to criminal money laundering charges and called the pardon blatant corruption.
- President Trump pardoned Changpeng Zhao last week after he pleaded guilty in 2023 to failing to maintain an effective anti-money laundering program.
Changpeng Zhao’s legal team has sent a formal demand to Senator Elizabeth Warren. The letter requests an immediate retraction of statements made after President Donald Trump pardoned the former Binance CEO. Lawyer Teresa Goody Guillén has threatened potential legal action over what she calls defamatory remarks.
Changpeng Zhao Pushes Back Against Senator’s Claims
Teresa Goody Guillén delivered the letter to Warren this week. The top Democrat on the Senate Banking Committee received the formal request for retraction. Fox News reported that Changpeng Zhao is considering a libel lawsuit against the senator.
Goody Guillén stated that Changpeng Zhao will not remain silent while facing defamatory statements. She accused Warren of misusing her office to publish harmful claims. The lawyer emphasized that these statements have damaged her client’s reputation and caused additional injury.
President Trump pardoned Changpeng Zhao last week after his 2023 guilty plea. He had pleaded guilty to failing to maintain an effective anti-money laundering program. The former executive paid a $50 million fine while Binance settled for $4.3 billion.
Warren’s Resolution and Corruption Allegations
Senator Warren criticized the presidential pardon on social media platform X. She claimed that Changpeng Zhao pleaded guilty to criminal money laundering charges. Warren and Senator Adam Schiff then circulated a resolution urging Congress to block the pardon.
The resolution described the pardon as blatant corruption. Warren’s Dear Colleague letter accused Trump of abusing the Oval Office. She also stated that the Trump family has become richer since the administration began.
Changpeng Zhao has denied reports from The Wall Street Journal about lobbying efforts. The publication claimed he sought a pardon from the Trump administration. However, connections between Trump-backed World Liberty Financial and Binance have raised questions among observers.
World Liberty Financial and Binance Connection
World Liberty Financial reportedly held discussions about purchasing a Binance stake. These talks occurred before the pardon was granted. The relationship between the two entities has drawn scrutiny from Warren and other lawmakers.
Abu Dhabi investment firm MGX announced a $2 billion deal with Binance six weeks later. The transaction used World Liberty’s USD1 stablecoin as consideration. This development prompted Warren to allege that the arrangement enriched the Trump family.
Goody Guillén rejected Warren’s claims about the MGX equity purchase. She called the insinuation that the deal enriched President Trump factually unsound. The lawyer argued that holding USD1 does not constitute unlawful enrichment.
Lawyer Defends Changpeng Zhao’s Reputation
Goody Guillén challenged Warren’s logic regarding the stablecoin transaction. She pointed out that every exchange listing USD1 would be guilty if Warren’s theory held. The lawyer noted that Warren does not make such allegations because she cannot.
Teresa Goody Guillén previously served as litigation counsel for the Securities and Exchange Commission. She was once a top contender to lead the agency. Goody Guillén now works as a partner at Baker & Hostetler LLP.
Changpeng Zhao was released from prison last year after serving his sentence. He completed his term before receiving the presidential pardon. The pardon came as part of a broader clemency effort by the Trump administration.
Senator Warren’s office did not respond to requests for comment on the letter. The senator has not publicly addressed the demand for retraction. Her team remained silent when contacted about Goody Guillén’s legal threat.
The dispute highlights tensions between crypto industry leaders and regulatory advocates. Changpeng Zhao built Binance into the world’s largest cryptocurrency exchange. The $4.3 billion settlement represented one of the largest corporate penalties on record.