- Former Binance CEO, Changpeng ‘CZ’ Zhao, has denied allegations he snitched on Tron founder, Justin Sun, as part of a plea deal with the US Department of Justice, which appeared in an April 11 Wall Street Journal report.
- Zhao claims, without evidence, that the report may be part of a lobbying effort against him and his former company taking place in the US.
- Sun said he maintains full trust in both Zhao and the US Department of Justice — legal charges against Sun were dropped earlier this year after he invested US$75 million in the Trump-backed DeFi project World Liberty Financial.
Former Binance CEO, Changpeng ‘CZ’ Zhao, has denied claims made in a Wall Street Journal (WSJ) report that he testified against Tron founder, Justin Sun, as part of a plea deal to get a reduced sentence for his role in Binance’s anti-money laundering violations.
In a report published April 11, the WSJ cited anonymous sources alleging Zhao had dished the dirt on Sun to the US Department of Justice (DOJ) in return for a shorter prison stint. “As part of Zhao’s plea deal, he agreed to give evidence on Sun to prosecutors,” the report claimed, citing the unnamed sources.
In response, Zhao took to X: “WSJ is really TRYING here. They seem to have forgotten who went to prison and who didn’t,” he posted.
People who become gov witnesses don’t go to prison. They are protected.
Changpeng ‘CZ’ Zhao, Binance CEO
Zhao added that he’d heard rumours “someone paid WSJ employees to smear me”. He has also suggested — without evidence — that the WSJ article is part of a coordinated lobbying campaign against him and his former company in the US.
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Zhao wound up serving 4 months in a Californian correctional facility last year, which made him the wealthiest person to ever serve time in a US jail. His net worth at the time was estimated to be around US$60 billion. Zhao was released from prison on September 27, 2024.
Related: Changpeng Zhao (CZ) Denies WSJ Report, Calling It an Attack on Crypto
Sun Says He Has “Full Trust” In Zhao, DOJ
Posting on X on April 11 following the WSJ report’s publication, Sun claimed he was not aware of the rumours Zhao had snitched.
CZ is both my mentor and a close friend—he has played a crucial role in supporting me during my entrepreneurial journey.
Justin Sun, Tron founder
Sun also claimed that the US Department of Justice had been one of the Tron ‘crime unit’, T3FCU’s, “closest and most trusted partners”.
The Tron founder further claimed that Tron and the DOJ had worked closely on several investigations.
Together, we’ve collaborated on numerous cases aimed at protecting users around the world.
Justin Sun, Tron founder
Sun said that he has “full trust” in both Zhao and the DOJ, stating that he and his team “maintain direct, honest communication at all times”, with both.
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Related: Trump-Backed DeFi to Boost His Personal Wealth, Not Crypto, Says Digital Asset CEO
The Tron founder’s own legal battle with the US Securities and Exchange Commission (SEC) was paused in February not long after Sun ‘invested’ US$75 million (AU$119.1 million) in the Trump-back DeFi project World Liberty Financial, making him the project’s largest single investor — he’s now also an advisor to the project. Sun had been facing charges related to insider trading and market manipulation.
The pausing of the legal case against Sun following his huge injection of cash into the Trump-backed crypto project has sparked corruption concerns, prompting two senior democrats to write to the SEC seeking all records related to WLFI, with a particular focus on its dealing with Sun.
