TRON Founder Justin Sun in DOJ Trouble? CZ Responds with the TRUTH

Reports initially claimed Binance founder CZ cooperated with the DOJ against Justin Sun—but the story quickly took a turn. What happens if Sun is next in line for prosecution?

The crypto world was left reeling today as a report from the Wall Street Journal (WSJ) claimed that Binance founder Changpeng Zhao (CZ) had cooperated with the U.S. Department of Justice (DOJ) to provide evidence against TRON founder Justin Sun.

According to the report, CZ’s cooperation was part of a broader plea deal with the DOJ, which saw Binance agree to pay $4.3 billion in penalties and have his sentence reduced. In return, CZ allegedly agreed to testify against Sun, who is said to be a main target of the DOJ’s investigation into crypto.

However, CZ took to social media to categorically deny the allegations, stating that “there is no such deal” and calling the WSJ’s claims “misleading”. His brief but direct response has left many confused, especially given the initial report’s assertions.

The WSJ article, written by Paul Sonne and Joann Swayne, further stated that after months of legal battles with the U.S., Binance ultimately reached an agreement to pay the hefty sum in penalties. The report also mentioned that Sun, the founder of TRON and a persistent presence on the Chinese social media platform Weibo, is now in the DOJ’s crosshairs.

The DOJ’s investigation into Sun reportedly centers on allegations of fraud related to the TRON cryptocurrency project. According to the report, the DOJ is considering filing charges against Sun, who has also been a subject of scrutiny from the U.S. Securities and Exchange Commission (SEC).

The possibility of DOJ charges against Justin Sun could have significant implications for the crypto market, especially given Sun’s influence in the industry. A finding of guilt against Sun could lead to the introduction of new regulations for cryptocurrencies in the U.S., potentially affecting various projects and exchanges.

Moreover, investor confidence in all of Sun’s ventures—including TRON, BitTorrent, Poloniex, and HTX (formerly Huobi), where he serves as a major shareholder—would be undermined. In a market as volatile as crypto, even rumors of DOJ action can have devastating consequences.