CZ Slams WSJ Report Alleging He Agreed to Testify Against Justin Sun

Former Binance CEO Changpeng “CZ” Zhao has strongly denied claims that he agreed to provide evidence against Tron founder Justin Sun as part of a plea deal with the U.S. Department of Justice (DOJ).

Former Binance CEO Changpeng "CZ" Zhao has slammed a report by the Wall Street Journal (WSJ) which claimed that he agreed to provide evidence against Tron founder Justin Sun as part of a plea deal with the U.S. Department of Justice (DOJ).

The report, which was published on April 11, cited unnamed sources who alleged that CZ’s cooperation with prosecutors included testifying against Sun—an arrangement that “hasn’t previously been reported.” It added that the cooperation agreement was reached in 2024 as part of a plea deal for CZ to avoid prosecution for alleged crimes, including conspiracy to violate the money laundering statute.

However, taking to X on April 12, CZ pushed back against the claims with sharp criticism of the Journal’s reporting:

"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. They are protected. I heard someone paid WSJ employees to smear me."

Zhao served a four-month prison sentence in 2024 for violations of anti-money laundering laws. He was released on September 27 and, with an estimated $60 billion net worth at the time, became the wealthiest individual to serve a U.S. prison sentence.

He further claimed that multiple people had warned him the Journal was preparing a “hit piece” against him.

"This is the type of financial reporting and analysis that has value. Not hit pieces written by someone who got paid to do so. Multiple ppl warned me that WSJ is preparing a hit piece against me. I didn’t believe it. But it seems to be true. Sadly, no surprise. "

The report also stated that the Journal contacted Sun, who responded that he was unaware of the rumors and dismissed any suggestion of bad blood.

"Justin is a mentor and close friend, and I am grateful for his support. I am not aware of any rumors or speculation regarding Mr. Zhao's cooperation with the U.S. Department of Justice," Sun said.

In a separate post, CZ suggested that lobbying efforts might be behind the recent negative headlines:

"I also heard some rumors about some players ‘lobbying’ against us again in the US.

Seems like the same players are trying to use the media to influence public opinion. הזוי."

This isn't the first time CZ has raised concerns about behind-the-scenes efforts to discredit Binance. In late 2023, he accused the now-defunct FTX of lobbying regulators to target Binance, referencing a Federal Newswire report.

At the time, CZ stated on X, "FTX was lobbying the U.S. Congress to close down Binance. They even got articles about it published in the Federal Newswire. It's quite interesting to see these lobbying efforts unfold."

His comments followed a report by the news outlet, which highlighted a bipartisan group of lawmakers introducing legislation to "establish a comprehensive regulatory framework for digital assets and provide the U.S. Securities and Exchange Commission (SEC) with clear authority to regulate crypto exchanges."

The report noted that the proposed bill, titled the "Digital Asset Innovation and Protection Act," aimed to "harmonize federal and state regulations, foster innovation in the digital asset sector, and protect consumers."

It was co-led by Senators Bill Hagerty (R-Tenn.) and Mark Warner (D-Va.), along with Representatives Tom Emmer (R-Minn.) and Maxine Waters (D-Calif.).

"This legislation will provide much-needed clarity and predictability for digital asset firms operating in the United States, and it is a critical step in positioning our economy to remain at the forefront of this rapidly developing technology," Emmer said in a statement.

The bill focused on establishing a licensing regime for crypto exchanges, aiming to register them with the SEC and provide express regulatory coverage for digital asset products, such as stablecoins and crypto derivatives. It also aimed to create a framework for cross-border cooperation in digital asset regulation.

"We need to create a regulatory framework that balances innovation and protection, and this legislation does just that," Warner added.

The initiative came amid heightened attention on crypto regulation in the U.S. as the SEC stepped up enforcement actions against major players in the industry.

Earlier this year, the SEC sued Binance for allegedly operating an unregistered exchange, defrauding investors in crypto products, and flouting federal securities laws.

The regulator also sued Ripple for allegedly selling unregistered securities in the form of XRP tokens. Both cases are pending in court.

In December 2023, FTX filed for bankruptcy after facing a liquidity crisis. Its founder, Sam Bankman-Fried, is currently facing criminal charges for allegedly misusing customer funds and defrauding investors in a multi-year scheme.

Bankman-Fried's trial is set to begin on October 25. He has pleaded