CZ Dismisses WSJ Report Alleging He Provided Evidence Against Justin Sun Amid Legal Speculation

Changpeng "CZ" Zhao, founder of global crypto exchange Binance, has publicly dismissed a Wall Street Journal report suggesting he provided evidence against TRON founder Justin Sun to U.S. authorities as part of his plea agreement.

Taking to social media platform X, Zhao responded to the WSJ’s claims with skepticism, writing: “WSJ is really TRYING here.” He further speculated that the article could be part of a smear effort, although he provided no concrete proof. “People who become gov witnesses don't go to prison. They are protected,” CZ wrote, adding, “I heard someone paid WSJ employees to smear me.”

TRON founder Justin Sun echoed a conciliatory tone, referring to CZ as “my mentor and a close friend.” Sun also commended the U.S. Department of Justice for its work with the T3 Financial Crime Unit, a private initiative involving TRON, Tether, and TRM Labs that focuses on preventing illicit activity involving the USDT stablecoin on the TRON blockchain.

CZ’s legal troubles stem from his November 2023 guilty plea to violating the U.S. Bank Secrecy Act, admitting that Binance failed to maintain an effective anti-money laundering program. While prosecutors originally pushed for a three-year sentence, Zhao ultimately received four months—a result that sparked debate in crypto circles. “I can't believe CZ is getting four months and not 18,” remarked Terrence Yang of Swan Bitcoin.

Zhao’s claim that government witnesses are typically shielded from imprisonment doesn’t always hold true. Caroline Ellison, former CEO of Alameda Research, pleaded guilty to charges carrying a potential 110-year sentence but served only two years after cooperating in the case against FTX founder Sam Bankman-Fried, who was sentenced to 25 years.

In the same report, WSJ detailed recent efforts by Binance to ease regulatory oversight. The company’s leadership reportedly met with U.S. Treasury officials last month, seeking to remove a monitor appointed by the Financial Crimes Enforcement Network (FinCEN). That monitor, Sullivan & Cromwell’s Sharon Cohen Levin, is one of two assigned to Binance following its plea deal with the Justice Department. Binance is reportedly hoping for a more favorable outcome under a potential Trump administration.

Adding fuel to the fire, WSJ reported that Binance has held talks about listing USD1, a stablecoin backed by short-term U.S. Treasuries and associated with Trump-aligned crypto project World Liberty Financial. CZ was also said to be seeking a presidential pardon—another point he downplayed, though with a touch of humor: “No felon would mind a pardon, especially being the only one in U.S. history who was ever sentenced to prison for a single BSA charge.”

Meanwhile, Binance's native token BNB rose roughly 1.3% over the past 24 hours. This comes as Binance and the U.S. Securities and Exchange Commission (SEC) jointly requested an additional 60-day pause in their separate legal dispute, highlighting ongoing negotiations.

Neither Binance nor the WSJ reporters responded to requests for comment.