Tron founder Justin Sun denies knowledge of rumors he cooperated with U.S. authorities to provide evidence against Binance CEO CZ

The claims surfaced following an April 10 report by The Wall Street Journal, which cited unnamed sources claiming Zhao's plea deal with the Department of Justice (DOJ) included cooperation targeting Sun.

Tron founder Justin Sun has shot down rumors that former Binance CEO Changpeng "CZ" Zhao cooperated with U.S. authorities to provide evidence against him, as reported by The Wall Street Journal.

The claims surfaced following an April 11 report by the outlet, which cited unnamed sources claiming Zhao’s plea deal with the Department of Justice (DOJ) included cooperation targeting Sun.

“I’m not aware of the circulating rumors. CZ is both my mentor and a close friend,” Sun wrote on X, responding to a user inquiry about the allegations.

He went on to praise Zhao for his integrity and support throughout his entrepreneurial career, further noting that the DOJ remains one of the most trusted partners of the T3 Financial Crime Unit — a group co-founded by Tron, Tether, and TRM Labs.

"The DOJ is a trusted partner of the T3 Financial Crime Unit in the shared mission to combat financial crime and protect the broader digital asset ecosystem. We will continue to collaborate with relevant authorities and institutions to promote a safe, secure, and compliant Web3 ecosystem for all."

The allegations emerged months after Zhao was sentenced to four months in prison for anti-money laundering violations. Though Zhao has not addressed the specific report, he posted a cryptic warning to his 10 million followers on X the day before the article was published, suggesting a "baseless hit piece" was imminent.

"Be aware of a hit piece that will be published tomorrow, likely in one of the major U.S. papers, wrote one X user. It will be a baseless article about me, written by a reporter who is known to be biased and anti-crypto. Don't be surprised if you see it. It will be a coordinated effort to discredit me and my work."

Legal backdrop and broader implications

Sun’s name has been embroiled in legal proceedings since March 2023, when the U.S. Securities and Exchange Commission (SEC) sued him and three of his companies for allegedly offering and selling unregistered securities, as well as manipulating token trading volumes.

In February 2025, both Sun and the SEC requested a pause in the case to pursue settlement talks. The suggestion that Zhao, who walked free from prison in September 2024, might be cooperating with federal authorities adds fresh uncertainty to Sun’s legal outlook.

If substantiated, the alleged cooperation could complicate Sun’s legal strategy and potentially expose further ties between major crypto leaders and regulatory enforcement actions. For now, both figures remain silent on the legal specifics, while industry observers await formal updates from the DOJ or SEC.

Recently we wrote, that the U.S. Securities and Exchange Commission (SEC) and cryptocurrency exchange Binance have jointly requested a 60-day pause in their ongoing legal proceedings, citing progress in settlement negotiations.