Binance co-founder Changpeng “CZ” Zhao has refuted claims that he agreed to testify against TRON founder Justin Sun as part of the settlement terms in his deal with the United States Department of Justice.
‘WSJ Is Really Trying Here’ – Binance Co-Founder
According to an April 11 report by the Wall Street Journal, CZ agreed to provide evidence against Sun as part of his plea deal with the US Justice department. Citing unnamed sources, the WSJ also alleged that Binance executives are lobbying the US Treasury to reduce its oversight of the exchange’s operations.
In a post on the social media platform X, CZ wrote that the “WSJ is really TRYING here,” downplaying the claims made in the report. According to the Binance co-founder, he wouldn’t have served any jail time, assuming he indeed became a government witness and provided information on Sun.
Zhao knew the report was coming, as he already indicated that the “WSJ is writing another baseless hit piece” in an April 11 post on X. In the latest post, CZ reiterated his belief about the report being artificially motivated, claiming someone paid the Wall Street Journal to lead a smear campaign against him.
In a response to BlockTower Capital founder Ari Paul, CZ clarified the charges brought against him by the DoJ.
Zhao said:
To be clear, there were NO “money laundering” or “fraud” charges. You are confusing “ANTI-money laundering” to “money laundering”. One is a failure to prevent/police. One is doing it yourself. Two very different things.
CZ was sentenced to four months in prison in April 2024 after pleading guilty to Anti-Money Laundering (AML) violations as Binance CEO. The co-founder was released from US federal prison in September 2024 and has since been involved in other endeavors in and outside the cryptocurrency industry.
Justin Sun Downplays CZ Plea Deal Rumor
In a post on X, Sun tried to play down WSJ’s allegations against CZ, saying he is not aware of the circulating rumors. “CZ is both my mentor and a close friend—he has played a crucial role in supporting me during my entrepreneurial journey,” the TRON founder said.
Sun also maintained that he has a direct and honest communication line with both CZ and the US Department of Justice. He highlighted this by mentioning that the DoJ is one of the closest and most trusted partners of T3 Financial Crime Unit (T3 FCU) — a blockchain security initiative co-founded by TRON, Tether, and TRM Labs.
