Changpeng “CZ” Zhao, co-founder of Binance, has publicly denied claims that his plea deal with the U.S. Department of Justice includes cooperation against TRON founder Justin Sun. The Wall Street Journal had reported that CZ agreed to assist U.S. authorities with evidence implicating Sun. However, CZ took to X (formerly Twitter) to firmly refute these allegations, stating that such cooperation would have significantly altered his sentencing outcome.
WSJ is really TRYING here. They seem to have forgotten who went to prison and who didn't. 🤯
— CZ 🔶 BNB (@cz_binance) April 12, 2025
People who become gov witnesses don't go to prison. They are protected.🤷♂️
I heard someone paid WSJ employees to smear me.😅 https://t.co/xqpnBwvlmi
“My four-month sentence speaks for itself,” CZ emphasized, arguing that those who cooperate typically receive non-custodial deals. He underscored that he did not provide testimony against any individual, including Justin Sun, and labeled the WSJ report as misleading and baseless.
In a bid to clarify public misunderstanding, CZ also engaged with Ari Paul, founder of BlockTower Capital, to differentiate between money laundering and anti-money laundering (AML) violations. “My case involved AML program breaches—not money laundering or fraud,” CZ explained, calling attention to a frequent misconception within the crypto community.
Meanwhile, Justin Sun responded with surprise, asserting his innocence and denying knowledge of any deal involving CZ. He referred to CZ as a long-time mentor and friend, dismissing the speculation as unfounded. The TRON Foundation reiterated its commitment to legal transparency and ongoing cooperation with regulators.
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The timing of this controversy coincides with the U.S. Securities and Exchange Commission’s (SEC) ongoing civil lawsuit against Sun, filed in March 2023. The SEC accuses Sun and his companies of unregistered securities sales and alleged wash trading using TRX tokens. However, recent court developments suggest a settlement may be on the horizon, as both parties enter discussions under a court-approved stay.
For crypto investors, CZ’s denial is critical. Market sentiment surrounding Binance Coin (BNB) and other assets remains highly sensitive to legal developments. The crypto industry continues to navigate intense regulatory scrutiny, where misinformation can have ripple effects. By swiftly denying the claims, CZ and Sun aim to preserve both reputational integrity and investor confidence in a market where clarity is everything.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
