Crypto War Heats: CZ’s Legal Team Slams Warren Post-Pardon

A new fight has started in the world of cryptocurrency. On November 2, 2025, Changpeng Zhao’s lawyer sent a letter to Senator Elizabeth Warren. The letter accuses Warren of making false claims about Zhao’s recent pardon by President Trump.

This dispute is escalating, shifting from courts to Capitol Hill. The clash involves prominent figures, substantial financial stakes, and intricate political dynamics.

The Letters and the Dispute

Changpeng Zhao is Binance’s founder. President Trump pardoned him on October 23, 2025. Zhao had pleaded guilty to a regulatory violation. He paid a $4.3 billion fine with Binance. On October 28, Teresa Goody, his lawyer, wrote to Warren.

The letter calls Warren’s statements “objectively false.” Warren said Zhao was guilty of a crime. Goody says this is wrong. She asks for a public retraction. She also wants a congressional resolution. The letter states that Warren’s words have harmed Zhao’s reputation. It was leaked on X.

Warren replied on November 2, 2025. Her lawyer, Ben Stafford, defended her. He says her claims are valid. Stafford notes that Zhao’s guilty plea is public. He rejects the retraction demand.

This shows a significant disagreement. Warren has long pushed for crypto rules. She thinks crypto hides crimes. Zhao’s team disagrees. The letters mark a new fight. It’s between Zhao’s legal team and U.S. lawmakers.

Background and Bigger Issues

Zhao’s pardon came after a long legal battle. In 2023, Binance admitted to breaking U.S. laws. The company helped users avoid sanctions. This led to the huge fine. Trump’s decision to pardon Zhao came as a surprise to many.

Some say it’s because of his pro-crypto stance. The Trump family has invested in crypto projects. This raises questions about conflicts of interest. Warren has long warned about the risks of crypto. She thinks it threatens national security.

Her critics say she lacks proof. Studies on crypto regulation are limited. This makes the debate tricky. The pardon has split opinions. Some cheer it as a win for innovation. Others see it as unfair. The White House refers to past crypto prosecutions as a “war on cryptocurrency.”

This adds fuel to the fire. Zhao thanked Trump on social media. He said the pardon shows fairness. Now, the fight is less about courts and more about politics. It could affect future crypto laws.

Why It Matters?

Zhao’s pardon ended his legal case. He faced jail time before the pardon. Trump’s decision surprised many. Some link it to Trump’s support for cryptocurrency. His family has crypto investments. This raises conflict questions.

Warren has criticized crypto for years. She co-sponsored a 2022 bill on money laundering. She says crypto threatens security. The dispute could affect future laws. The pardon split opinions. Some see it as a win for crypto. Others call it unfair.

Zhao thanked Trump online. He called it a fair move. Now, the fight is political. It involves Congress and public views. Warren’s influence is strong.

She sits on the Senate Banking Committee. This could shape crypto rules. The White House backs crypto. This adds tension.