CZ, Justin Sun Call WSJ Claims 'Smear'
Former Binance chief and Tron founder denied allegations claiming a cooperation deal with the US government when the former was serving a prison sentence.
Changpeng "CZ" Zhao, the former CEO of the world’s largest crypto exchange, and Tron founder Justin Sun have rejected Wall Street Journal report claiming that the Binance ex-chief had agreed to testify against Sun as part of his plea deal with US authorities.
The strongly-worded denials come as the crypto industry navigates an increasingly complex relationship with the Trump administration, raising questions about political influence in digital asset regulation.
A Wall Street Journal report published Friday cited unnamed sources claiming Zhao had committed to providing evidence against Sun as part of his 2023 settlement with the US Department of Justice.
"As part of Zhao's plea deal, he agreed to give evidence on Sun to prosecutors," the WSJ report stated, describing this as an "arrangement" that "hasn't previously been reported."
The timing of the report raised eyebrows as it coincided with Binance executives reportedly meeting with US Treasury officials to discuss removing a monitor overseeing the exchange's compliance with anti-money laundering laws.
The Response 🔥
Zhao, who served four months in prison after pleading guilty to money laundering violations, didn't mince words in his rebuttal.
Sun echoed the sentiment with surprising warmth toward his supposed adversary calling CZ his “mentor and a close friend”.
The controversy emerges against a backdrop of shifting crypto politics in Washington.
Sun has invested a total of $75 million in World Liberty Financial's stablecoin USD1, a DeFi venture backed by US President Donald Trump's family. Coincidentally, the SEC has paused its fraud case against him.
Meanwhile, Binance has reportedly discussed listing USD1, while seeking relief from the compliance requirements imposed as part of its record $4.3 billion settlement with US authorities.
Prediction markets currently assign an 18% probability, down from the high of 27% three daya ago, that the Trump family will acquire a stake in Binance's US affiliate before July, despite Zhao's denial of any such discussions.
Neither the Department of Justice nor the White House has commented publicly on the alleged cooperation agreement or potential pardon considerations for Zhao.