CZ Denies Testifying Against Justin Sun in Plea Deal, Calls WSJ Report “Baseless”

Former Binance CEO Changpeng Zhao, known as CZ, and Tron founder Justin Sun have both strongly denied a Wall Street Journal (WSJ) report alleging that Zhao agreed to testify against Sun as part of his 2023 plea deal with U.S. authorities.

The WSJ, citing unnamed sources, claimed Zhao — who served a four-month prison sentence after pleading guilty to money laundering violations — agreed to provide evidence against Sun in return for a lighter sentence.

A day before the WSJ article was published, Zhao hinted at the story on X, calling it a “baseless hit piece.” Following the report’s release, he tweeted: “WSJ is really TRYING here. They seem to have forgotten who went to prison and who didn’t. People who become gov witnesses don’t go to prison,” further suggesting that someone “paid WSJ employees” to “smear” him.

Sun, who is separately facing charges from the SEC, also rejected the claims. He described Zhao as his “mentor” and “close friend,” saying the former Binance chief “played a crucial role” in his “entrepreneurial journey.”

The article was published amid reports that Binance executives had met with U.S. Treasury officials last month to discuss lifting the U.S.-imposed monitor overseeing the company’s compliance with anti-money-laundering laws.

Meanwhile, Binance is reportedly in talks to list USD1 — a stablecoin issued by World Liberty Financial, a decentralized finance project linked to former President Trump’s family, in which Sun is an investor. These talks allegedly started before the Treasury meetings, raising questions about potential conflicts of interest.

A Treasury spokesperson confirmed the meeting took place but said it was “one of dozens” the agency has held with figures from the crypto industry.

In response, Binance stated that the compliance monitoring has led to “inefficient and costly burdens,” adding that any modifications to its systems should be viewed as “fine-tuning” rather than a “loosening of controls.” The WSJ also claimed the exchange was pursuing a presidential pardon for Zhao — a claim he denied.

In a broader shift, the Department of Justice last week paused its use of corporate monitorships and dissolved its crypto enforcement unit, which had played a key role in the Binance case in 2023.

Neither the DOJ nor the White House has publicly addressed the claims about Zhao’s alleged cooperation or the reported pardon efforts.