Warren’s Lawyer Defends Remarks on CZ Zhao Amid Defamation Threat

• Warren’s lawyer insists her CZ Zhao statement was entirely accurate.
• CZ threatens lawsuit over Warren’s alleged defamatory money laundering claim.
• Legal clash intensifies as both sides defend their public statements.

Tensions continue to rise between Senator Elizabeth Warren and Binance founder Changpeng “CZ” Zhao following Warren’s remarks after President Trump’s pardon of the crypto billionaire. According to a letter obtained by Punchbowl News, Warren’s attorney, Ben Stafford, dismissed Zhao’s defamation threat, asserting that the Senator’s comments were “true in all respects.”

Stafford defended Warren’s statement on X, where she noted that Zhao “pleaded guilty to a criminal money laundering charge.” He explained that her words reflected accurate and publicly available facts. Stafford further emphasized that Zhao’s guilty plea was tied to a criminal violation under the Bank Secrecy Act, which is considered the United States’ main anti-money laundering statute.

Zhao, however, challenged Warren’s claim, arguing in an X post that “there were no money laundering charges.” His attorney, Teresa Goody Guillén, warned that a defamation lawsuit would be filed if Warren refused to retract her statement. Guillén maintained that Zhao had only pleaded guilty to a “regulatory count” related to the failure to implement an effective anti-money laundering program, not a direct money laundering offense.

Also Read: Privacy Coins in Silent Bull-Run – How XRP is Connected

Legal Exchange Intensifies Between Warren and Zhao’s Teams

Stafford pushed back on Guillén’s characterization, noting that “regulatory penalties” do not exist under the Bank Secrecy Act. He added that Zhao’s plea, presented by the Department of Justice, led to a criminal sentence, confirming Warren’s statement as factually correct.

Moreover, Stafford argued that any potential defamation case would face significant legal challenges, given Zhao’s status as a public figure. To succeed, Zhao would have to prove that Warren acted with actual malice, meaning she knowingly spread false information. Stafford maintained that Warren’s comments were entirely accurate and fell well within her protected speech rights.

He further clarified that Warren’s post should not be misinterpreted as suggesting that Zhao faced any other money laundering charge beyond the one he admitted to.

The clash between the two figures underscores ongoing scrutiny of cryptocurrency regulation and the political tensions surrounding it. As both sides remain firm, the exchange reflects the broader debate over accountability and transparency within the digital asset sector.

Also Read: Pundit Says ‘Something Strange is Happening Inside Ripple’ – Here’s Why

The post Warren’s Lawyer Defends Remarks on CZ Zhao Amid Defamation Threat appeared first on 36Crypto.