Tron Founder Justin Sun denies the rumors about CZ’s alleged cooperation with the DOJ.
Binance Founder CZ has not publicly commented on the allegations, though he previously warned about releasing a “baseless hit piece.” Justin Sun, the founder of Tron (TRX), has dismissed recent rumors claiming that Binance CEO Changpeng Zhao (CZ) cooperated with the U.S. Department of Justice (DOJ) to provide evidence against him. This speculation surfaced after the Wall Street Journal reported on April 11, 2024, suggesting that Zhao’s cooperation might be tied to a plea deal aimed at reducing his sentencing in a money laundering case.
Later that day, Justin Sun addressed the issue publicly through his official X (formerly Twitter) account. He dismissed the claims, firmly stating that CZ had not provided any evidence against him. Sun emphasized that the rumors were baseless and that he continues to maintain confidence in CZ’s integrity.
“I’m not aware of the circulating rumors. CZ is both my mentor and a close friend. He has been crucial in supporting me during my entrepreneurial journey,” Sun stated.
Sun also emphasized the level of trust and communication between him, CZ, and DON’T. “Whether it’s CZ or our partners at the DOJ, we always maintain direct, honest communication. I have complete trust in every one of them,” Sun added.
This response followed reports from The Wall Street Journal, which alleged that CZ had agreed to cooperate with the DoJ in his plea deal related to anti-money laundering (AML) violations. CZ was sentenced to four months in prison and has not publicly responded to these allegations.
However, just before the story broke, he had warned his 10 million X followers of a “baseless hit piece” against him.
While these reports remain unconfirmed, the situation points to ongoing legal struggles for CZ and Justin Sun. Zhao’s plea deal with the DoJ is part of a broader investigation into Binance and its operations.
Meanwhile, Sun is facing legal challenges from the U.S. SEC regarding fraud allegations. Despite these challenges, Justin Sun feels it appropriate to express his confidence and loyalty in his colleagues and legal entity.
Broader Crypto Industry Context
The tensions between Sun, CZ, and the DoJ arise when Binance actively negotiates with U.S. authorities to reduce the oversight of its operations. In addition to the AML settlement, Binance is reportedly seeking to regain its foothold in the U.S. market by removing a government monitor overseeing its compliance.
This aligns with recent reports that Binance might partner with World Liberty Financial (WLFI), a crypto venture tied with the Trump family, to list a new stablecoin. These discussions illustrate the complex regulatory landscape that Binance is navigating, with significant political and financial ties shaping the company’s prospects.
For Justin Sun, the situation also affects his ongoing efforts to position Tron (TRX) for success under President Trump’s leadership. He has publicly expressed optimism about crypto policy under the current U.S. administration.
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