CZ Denies DOJ Deal as Justin Sun Defends Him Amid Binance’s U.S. Push

CZ Denies Deal to Testify Against Justin Sun as Political Stakes Rise

Fresh controversy surrounds Binance founder Changpeng Zhao (CZ) following an April 11 Wall Street Journal report alleging he agreed to provide evidence to the U.S. Department of Justice (DOJ) against longtime friend and Tron founder Justin Sun. The report claimed this cooperation was part of CZ’s 2023 plea agreement related to compliance violations. CZ responded swiftly, calling the story baseless and publicly rejecting any deal to testify against Sun. “WSJ attacking me again without any basis,” he posted on X, underscoring his frustration with the recurring media scrutiny.

Justin Sun also pushed back against the allegations, calling CZ a “mentor and a close friend” who supported him throughout his career. Sun didn’t stop at defending Zhao—he went on to affirm his close working relationship with the DOJ. “The Department of Justice has been one of T3FCU’s closest and most trusted partners,” he said, referencing their collaborative efforts to safeguard users globally. He added, “We maintain direct, honest communication at all times. I have full trust in each and every one of them.” Sun warned against attempts to fracture the crypto space through unfounded rumors. “Crypto is already a small space—only by standing together can we change everything! We need every single one of your votes!” he wrote, calling for unity.

The broader backdrop to the CZ-Sun drama is Binance’s strategic legal repositioning following its $4.3 billion settlement with the DOJ in 2023. New Binance CEO Richard Teng has been leading efforts to re-enter the U.S. market by softening regulatory scrutiny. Executives recently met with U.S. Treasury officials to lobby for the removal of an independent compliance monitor installed as part of last year’s plea deal. At the same time, Binance is reportedly seeking to list a new stablecoin, USD1, issued by World Liberty Financial (WLFI), a Trump-linked DeFi initiative. The move suggests Binance may be aligning itself with pro-crypto figures within the Trump orbit, potentially laying groundwork for future political leverage.

The Trump family's growing involvement in the crypto sector adds a new layer of intrigue. There are ongoing rumors that Trump affiliates are exploring an equity stake in Binance.US. Meanwhile, DOJ memos hint at a philosophical shift under a potential second Trump administration, including the dismantling of the DOJ’s crypto crimes unit and a pivot away from corporate monitoring. These changes, described internally as “ending regulation by prosecution,” could significantly ease pressure on firms like Binance. CZ has denied speculation that he is seeking a presidential pardon, dismissing it as a politically motivated fabrication.

Justin Sun’s links to WLFI have also drawn attention. In November 2024, he injected $30 million into the struggling Trump-aligned project, a move that helped keep it afloat. Should Binance proceed with listing WLFI’s USD1 stablecoin, it could unlock lucrative revenue streams and potentially influence DOJ leniency in CZ’s case. The intertwining of Binance’s U.S. ambitions, DOJ negotiations, and proximity to Trump-aligned ventures paints a complex picture of regulatory strategy mixed with political calculus.

CZ, who built Binance into the world’s largest crypto exchange after a $15 million ICO in 2017, stepped down as CEO in 2023 following the DOJ settlement. He is currently serving a brief prison sentence tied to the plea deal, yet remains a powerful figure in crypto, with an estimated net worth of $59.4 billion. Justin Sun, best known for founding Tron and acquiring BitTorrent, is also under unofficial scrutiny by the DOJ but has not been formally charged. Despite legal shadows, he continues to expand his influence through projects like WLFI, carrying an estimated $2 billion net worth and a reputation for high-profile stunts—including a controversial dinner with Warren Buffet.

This article has been refined and enhanced by ChatGPT.