Changpeng Zhao Denies Claims He Agreed to Provide Evidence Against Justin Sun as Part of a Plea Deal

Changpeng “CZ” Zhao, former CEO of Binance, has denied claims that he agreed to provide evidence against Tron founder Justin Sun

Changpeng "CZ" Zhao, the former CEO of Binance, has denied claims that he agreed to provide evidence against Tron founder Justin Sun as part of a plea deal with the United States Department of Justice (DOJ).

In an April 11 report, The Wall Street Journal cited unnamed sources alleging that CZ had agreed to testify against Sun in the terms of his settlement with US prosecutors.

“As part of Zhao’s plea deal, he agreed to give evidence on Sun to prosecutors, an arrangement that hasn’t previously been reported,” the WSJ report stated, citing sources familiar with the matter.

“But facts are facts. WSJ is really TRYING here. They seem to have forgotten who went to prison and who didn’t. People who become gov witnesses go to prison. They are protected. I heard someone paid WSJ employees to smear me.”

Source: Changpeng Zhao

CZ was sentenced to four months in federal prison in April 2024 for Anti-Money Laundering (AML) violations. He walked free from the correctional facility on Sept. 27 as the wealthiest person to ever serve a US prison sentence, with a $60 billion net worth at the time.

In a separate April 11 post, CZ claimed multiple individuals had warned him about the Journal’s intentions to publish what he described as a “hit piece.”

“I am getting msgs from friends & colleagues who are surprised by the defamatory article on me by the WSJ (again). People who know me know it’s not true. Those who don’t … well. It's a hit piece, and they are going after me hard. They got the facts wrong, mixed up the dates, and more. They are really trying.”

Sun, who is also known for his role as the founder of the cryptocurrency project TRON, reacted to the report on April 11.

“I am not aware of the circulation rumors on the Internet about me being a witness in a case settled by a third party with the U.S. government. To the best of knowledge, it is not true. I have a good relationship with the government and cooperate fully with the relevant agencies.”

Sun added that he holds “great respect” for CZ, calling him a “mentor and close friend.”

Related: Trump kills DeFi broker rule in major crypto win: Finance Redefined

'Some players are lobbying against us again in the US' — CZ

Speculating on a possible reason for the Journal report, CZ suggested it could be linked to lobbying efforts against him and his former company.

“I also heard some rumors about some players 'lobbying' against us again in the US. Who could it be?” he asked.

Cointelegraph has reached out to CZ for more details on the lobbying claims.

In November 2023, Zhao said that “FTX sought regulatory 'crack down' on Binance to increase market share," according to a Federal Newswire report.

Zhao’s comments come over a month after crypto donations raised influence concerns among industry participants.

Crypto firms spent over $134 million on the 2024 US elections in “unchecked political spending,” which presents some critical challenges, according to a March 10 report by the Center for Political Accountability (CPA).

Fairshake donations. Source: politicalaccountability.net

“While the companies making these contributions may be seeking a favorable regulatory environment, these political donations further erode public trust and expose companies to legal, reputational, and business risks that cannot be ignored,” the report, titled "Still Unaccountable," stated.