Binance founder Changpeng Zhao is considering legal action against U.S. Senator Elizabeth Warren after she made a series of statements on social media that he claims are false and defamatory. The controversy ignited following President Trump’s recent pardon of Zhao, which was linked to a previous Department of Justice settlement concerning compliance failures—not money laundering or fraud, as Warren has suggested.

Senator Warren, a leading voice against the cryptocurrency industry, accused Zhao of financing a stablecoin related to Trump’s campaign and insinuated that his pardon was a result of lobbying and funding efforts. She referred to him as a “convicted felon” and implied improper ties between Zhao and the Trump family’s crypto ventures.

Zhao, frustrated by these allegations, publicly denied any money laundering charges and clarified that his legal proceedings stemmed from compliance issues, not criminal activity. He has hired former SEC attorney Teresa Goody Guillen to demand a retraction from Warren and is prepared to move forward with a defamation lawsuit if the statements are not withdrawn.

The legal ground for such a suit is complex, as U.S. lawmakers have certain immunities under the Speech and Debate Clause for statements made in their official duties. However, experts note that this protection does not necessarily extend to remarks made on social media, leaving room for potential legal action. Nonetheless, the lawsuit would still face significant hurdles, including the need for Zhao to prove that Warren acted with actual malice.

This clash highlights the ongoing tension between crypto leaders and political critics, especially as the regulatory and political spotlight on digital assets continues to intensify. The confrontation also emphasizes how social media has become a battleground for public disputes involving high-profile figures from both the tech and political spheres.