Former Binance CEO Changpeng Zhao, commonly known as CZ, and Tron founder Justin Sun have vehemently denied recent allegations made by the Wall Street Journal. The report claimed that Zhao had agreed to provide evidence against Sun as part of a plea deal with U.S. authorities following his conviction on money laundering charges.
In response to the allegations, both Zhao and Sun have refuted the claims, with Zhao taking to Twitter to express his disbelief in the accusations. He stated, “WSJ is really TRYING here. They seem to have forgotten who went to prison and who didn’t. People who become gov witnesses don’t go to prison.” Zhao also insinuated that someone may have paid employees at the Wall Street Journal to tarnish his reputation.
Sun, who is currently facing separate SEC charges, also defended Zhao, referring to him as his mentor and close friend. Sun acknowledged Zhao’s significant role in his entrepreneurial journey, further distancing himself from the allegations made in the report.
The Wall Street Journal’s piece comes at a time when Binance executives reportedly met with U.S. Treasury officials to discuss the removal of a U.S. monitor overseeing the exchange’s compliance with anti-money laundering laws. This meeting has raised concerns about potential conflicts of interest, particularly in light of discussions to list USD1, a stablecoin backed by World Liberty Financial, a venture that Sun has invested in.
Despite the allegations, Binance has maintained that any changes to its compliance systems are aimed at fine-tuning rather than loosening controls. The exchange has also denied seeking a presidential pardon for its former CEO, dismissing reports suggesting otherwise.
Recent developments, such as the DOJ pausing corporate monitorships and disbanding its crypto unit, have added complexity to the situation. The lack of public statements from the Department of Justice and the White House on the alleged cooperation agreement or potential pardon considerations has left many questions unanswered.
As the controversy continues to unfold, it remains to be seen how the situation will evolve and whether any further details will come to light. Stay tuned for updates on this developing story.
This article has been edited by Stacy Elliott.