Justin Sun Defends CZ Amidst Reports of Cooperation with DOJ

Justin Sun, the founder of TRON, has publicly defended Binance co-founder Changpeng “CZ” Zhao in the wake of a controversial report suggesting

Justin Sun, the founder of TRON and the cryptocurrency exchange Huobi, has publicly defended Binance co-founder Changpeng "CZ" Zhao following a controversial report suggesting that Zhao cooperated with the US Department of Justice (DOJ) against Sun.

The report, published by The Wall Street Journal on April 11, claimed that Zhao agreed to provide evidence on Sun to federal prosecutors as part of a plea deal following Binance's guilty plea for anti-money laundering violations. However, Sun has since downplayed the allegations, expressing full trust in Zhao, whom he described as both a mentor and a close friend.

"I'm not aware of the circulating rumors. CZ is both my mentor and a close friend—he has played a crucial role in supporting me during my entrepreneurial journey," Sun stated in a post on Telegram on Thursday. According to Sun, Zhao's actions have remained aligned with the highest ethical standards that he, as a founder, seeks to uphold.

In addition to defending Zhao, Sun addressed his own relationship with the DOJ. The TRON founder said that he has been working closely with the DOJ, particularly through his company T3FCU, on several initiatives aimed at protecting users globally.

"The Department of Justice has been one of T3FCU's closest and most trusted partners. Together, we've collaborated on numerous cases and initiatives to protect users around the world," Sun remarked, reinforcing his position that his engagement with the DOJ remains professional and transparent.

According to Sun, rumors and allegations are often used as tools to create division within the cryptocurrency industry. He pointed out that attempts to drive a wedge between him, Zhao, and the DOJ would only harm the broader crypto ecosystem.

"Whether it's CZ or our partners at the DOJ, we maintain direct, honest communication at all times. I have full trust in each and every one of them. Let's stay united and strong!" Sun concluded his post.

Earlier in the week, Zhao publicly mentioned being informed about an impending report focused on him. The Binance co-founder's response, alongside Sun's defense, indicates that both are working to address the growing speculation around their relationship with the DOJ and other external entities.

"A report is coming out tomorrow that includes some falsehoods about me and Binance. I prefer not to comment on rumors, but since it's part of a broader narrative about the DOJ and crypto, I'll respond to a few points," Zhao stated in a post on Twitter.

The report by The Wall Street Journal comes after Binance pleaded guilty in March to two counts of money laundering conspiracy and conspiracy to violate the U.S. sanctions against Iran. As part of the plea deal, Zhao agreed to cooperate with the DOJ by providing information on other individuals or entities involved in illicit activities.

Sun's comments come at a time when Binance is reportedly in negotiations with the US Treasury to overcome ongoing federal scrutiny, following the exchange's guilty plea in 2023 for violating U.S. anti-money laundering laws.