Binance founder Changpeng Zhao (CZ) and TRON founder Justin Sun have swiftly responded to a recent report by the Wall Street Journal (WSJ), denying claims that Zhao has agreed to cooperate with US prosecutors against Sun as part of a 2023 plea deal.
The WSJ article published on Friday alleged that Zhao, who was sentenced to four months in prison for anti-money laundering violations, presented evidence implicating Sun, who is currently under investigation by both the Securities and Exchange Commission (SEC) and the Department of Justice (DOJ).
Citing unnamed sources, the report positioned the deal as part of Binance’s broader effort to reduce regulatory pressure in the United States, particularly when partnering with World Liberty Financial, a cryptocurrency firm with ties to President Donald Trump’s family.
Both Zhao and Sun vehemently denied the allegations.
“Multiple people told me that WSJ wrote another baseless attack article about me,” Zhao wrote on social media platform X.
Sun, who was allegedly the target of the alleged collaboration deal, responded: “I have no knowledge of the rumors circulating. CZ is both my mentor and a close friend. They always try to use rumors to separate us. Only by standing together can we change everything.”
The report also noted that Sun invested $75 million in World Liberty’s stablecoin USD1 around the same time that the SEC suspended its fraud case against him. Binance insiders saw the investment as a strategic move to strengthen ties with a potential second Trump administration, according to the WSJ.
The publication also cited another report last month that suggested members of the Trump family were exploring taking a stake in Binance’s US subsidiary. Zhao categorically denied the allegations. “I have not had any discussions with anyone about a Binance US deal,” she said.
As Binance tries to mend its stance following a $4.3 billion settlement with U.S. authorities, internal discussions reportedly include seeking a potential presidential pardon for Zhao, though neither the Justice Department nor the White House have commented on the matter.
*This is not investment advice.
