CZ Denies Claims of Testifying Against Justin Sun Amid Legal Troubles

The founder of Binance, Changpeng Zhao (CZ), has denied media reports suggesting he testified against Tron’s head, Justin Sun, as part of an agreement with the U.S. Department of Justice.

This refers to a piece by the Wall Street Journal that described a meeting between representatives from the U.S. Treasury and Binance, which reportedly highlighted a previously unspecified arrangement between CZ and American prosecutors, citing unnamed sources.

In 2024, CZ was sentenced to four months in prison on money laundering charges. The entrepreneur agreed to pay a $50 million fine and cease his involvement with Binance. He was released in September 2024.

According to the WSJ report, as part of a deal with law enforcement, the exchange’s founder allegedly offered to testify against Sun, who has been embroiled in a legal dispute with the SEC since 2023.

“Here, the WSJ is really trying hard. It seems they’ve forgotten who went to prison and who didn’t. People who become government witnesses don’t end up in jail; they receive protection,” Zhao commented.

Sun stated that he is unaware of the rumors circulating.

“CZ is my mentor and a close friend. He has played a pivotal role in supporting me on my entrepreneurial journey. To this day, his conduct and principles serve as the highest standard I aspire to as a founder,” Sun said.

The Tron executive also mentioned his ongoing “direct and honest” communication with the Department of Justice and partners, whom he “fully trusts.”

Zhao further noted that he had heard about the publication’s preparation of “yet another baseless article” and lobbying against Binance in the U.S. by “certain players.”

In March, WSJ journalists reported on negotiations between Binance and the family of U.S. President Donald Trump regarding the acquisition of a stake in the exchange’s American arm. CZ denied the claims and suggested it was a deliberate attempt to discredit the publication.