The crypto world is buzzing after rumors surfaced claiming that ex-Binance CEO CZ gave evidence against Tron founder Justin Sun in a deal with the U.S. DoJ. But Sun has now denied those claims.
In an April 11 post on X, Sun stated, “I’m not aware of the circulating rumors. CZ is both my mentor and a close friend.” He further emphasized his confidence in both Zhao and the DoJ, saying, “I have full trust in each and every one of them.”
The controversy erupted after a Wall Street Journal report claimed that Zhao, who was sentenced to four months in prison in April 2024 for anti-money laundering (AML) violations, may have agreed to cooperate against Sun.
Zhao, released from a U.S. federal prison on September 27, is reportedly worth approximately $60 billion, making him the wealthiest individual ever to serve time in the U.S.
He has not yet publicly addressed the allegations, though he warned his 10 million X followers the previous day about a “baseless hit piece” being prepared about him.
Sun, however, stood firmly in defense of Zhao. “He has played a crucial role in supporting me during my entrepreneurial journey,” Sun wrote, praising Zhao’s integrity as a standard he strives to emulate.
He also highlighted his partnership with the DoJ through T3 Financial Crime Unit, co-founded with Tether and TRM Labs, noting, “Whether it’s CZ or our partners at the DOJ, we maintain direct, honest communication at all times.”
Meanwhile, Binance, the world’s largest crypto exchange, is actively seeking to re-enter the U.S. market. Executives recently met with Treasury Department officials to request the removal of a U.S. monitor overseeing their AML compliance, following the company’s 2023 guilty plea and a record $4.3 billion fine for enabling illicit transactions.
Binance is also in discussions with World Liberty Financial, a crypto venture backed by the Trump family, to list a new stablecoin, which could generate significant profits.
The connection to the Trump administration adds another layer to the story. At a December crypto conference in Abu Dhabi, Zhao mingled with Eric Trump and allies like Steve Witkoff, who pledged to champion cryptocurrency under the new presidency. Binance is reportedly exploring a pardon for Zhao and a potential stake in its U.S. arm, Binance.US, as the Trump administration moves to ease crypto regulations.
For Sun, legal challenges persist. The SEC is suing him and his companies for fraud, but both parties have asked a court to pause the case for settlement talks. Despite reports that more than half of last year’s $26 billion in illegal crypto activity happened on the Tron network, Justin Sun brushed off the claims, calling them “baseless allegations.” He also confirmed putting $75 million into World Liberty’s token.
This whole situation filled with questions of trust, legal issues, and political ties shows just how intense and high-stakes the world of crypto is becoming.
Also Read: CZ says ‘Honored to help Pakistan adopt Crypto’, What About India?
