On April 11, the Wall Street Journal (WSJ) published a report alleging that Binance’s founder, Changpeng “CZ” Zhao, provided information about Justin Sun, founder of Tron, to U.S. authorities in exchange for leniency in his own legal matters.
The story ignited instant backlash, prompting both Zhao and Sun to issue public responses that tore into the publication’s claims. What followed wasn’t a polite rebuttal – it was a full-throttle takedown accusing WSJ of pushing fiction.
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The WSJ’s Accusations: CZ’s Alleged Bargain with the DOJ
According to the WSJ, a meeting between Binance executives and U.S. Treasury officials took place in March 2024. During that meeting, Binance reportedly requested the removal of a U.S. compliance monitor – installed after the company’s $4.3 billion guilty plea in 2023 for violating anti-money laundering laws.
WSJ claims that Binance was positioning itself to regain access to the U.S. market, even as it explored a partnership with World Liberty Financial, a crypto venture linked to the Trump family.
Buried in the same report was a more explosive claim: CZ allegedly offered information to the U.S. Department of Justice (DOJ) about Justin Sun as part of a plea arrangement. This detail, previously unreported, framed CZ not just as a former CEO under fire but potentially as a cooperating witness.
Adding further fuel, the report stated that Binance was exploring the listing of a new dollar-pegged stablecoin issued by World Liberty Financial. The implications of such a move are massive. With Binance’s daily trading volume hovering around $65 billion and over 250 million users, a Trump-backed token could rake in billions. That partnership itself is painted as evidence of a growing alliance between Binance and Trump-aligned interests.
Read also: WLFI Quietly Tests USD1 Stablecoin – Here’s What We Know
CZ Fires Back: “They Forgot Who Went to Prison”
On social media, CZ didn’t let the accusations slide. In a sharply worded series of tweets, Zhao questioned the report’s logic, pointing out:
“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.”
He added that no one in U.S. history had served jail time for a single Bank Secrecy Act (BSA) violation until him, highlighting the precedent-setting nature of his case
“No one in US history went to jail for a single BSA violation, except me.”
Zhao characterized the WSJ article as a “baseless hit piece” and described it as part of a coordinated smear campaign. He didn’t mince words, suggesting that certain media outfits were being mobilized to further damage his already fragile public standing.
Justin Sun Denies Everything, Stands by CZ
Not long after the WSJ piece dropped, Justin Sun responded:
“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’s words weren’t just defensive – they were loyal. He described Zhao’s conduct and values as “the highest standard I strive to follow as a founder.” On top of that, Sun stated that Tron, Tether, and TRM Labs – co-founders of the T3 Financial Crime Unit – maintain a trusted relationship with the DOJ. Sun reaffirmed his trust not just in CZ but also in U.S. authorities.
“Whether it’s CZ or our partners at the DOJ, we maintain direct, honest communication at all times,” he wrote.
He ended with a sharp note of optimism for the crypto industry’s future under American policies: “ALL IN USA”.
Secret Deals or Media Hype?
There’s more at stake than personal reputations. The alleged discussions between Binance and World Liberty Financial point to deeper structural shifts in crypto. Should the Trump family’s crypto venture gain a Binance listing, it would instantly elevate its credibility and market power. With Binance’s extensive infrastructure, the stablecoin in question could challenge existing major players.
But as the story unfolds, the tug-of-war between media portrayal and crypto executives’ counter-narratives has taken center stage. Zhao’s conviction and four-month sentence, handed down in April 2024, marked a significant moment in crypto enforcement.
Zhao walked free on September 27. At the time of his sentence, Forbes pegged his net worth at $60 billion, making him the richest individual ever imprisoned in the U.S.
These facts, however, didn’t stop public speculation. The WSJ report played into a broader narrative of ongoing crackdowns, hinting at betrayals and secret deals – an angle that both Zhao and Sun vehemently dispute.
Read also: FDUSD Stablecoin Suffers Depeg Following Justin Sun’s Solvency Warning
