In a recent statement, Tron founder Justin Sun has expressed his unawareness of the swirling rumors regarding Changpeng “CZ” Zhao, the former CEO of Binance, and his alleged plea deal with the US Department of Justice (DoJ). Following reports from a well-known financial publication, which suggested that Zhao had provided evidence against Sun as part of his plea arrangement, Sun firmly stated, “I’m not aware of the circulating rumors. CZ is both my mentor and a close friend.” This declaration was made in an X post dated April 11, and came amidst rising speculations regarding Zhao’s legal circumstances.
Sun further elaborated on his relationship with Zhao, highlighting the significant role that the former Binance CEO has played in his entrepreneurial journey. He stated, “He has played a crucial role in supporting me during my entrepreneurial journey.” These remarks come just hours after the Wall Street Journal report which claimed that Zhao’s plea deal involved him supplying crucial testimony against Sun, drawing from sources in the know about the matter.
It is important to note that Changpeng Zhao recently faced sentencing to four months in prison in April 2024 due to violations relating to Anti-Money Laundering (AML) regulations. The report about this plea deal, including Zhao’s potential testimony, was purportedly the first of its kind. As of now, Zhao has not publicly responded to the rumors concerning his plea deal; however, prior to the news breaking, he warned his followers about a “baseless hit piece” being planned against him.
In response to the recent allegations, Sun praised Zhao’s integrity and expressed his confidence in the US Department of Justice, calling them one of the T3 Financial Crime Unit’s trusted partners. He emphasized, “Whether it’s CZ or our partners at the DoJ, we maintain direct, honest communication at all times. I have full trust in each and every one of them.” Sun’s commitment to maintaining trust and transparency lends credibility to his statements against the backdrop of ongoing scrutiny within the crypto world.
As events unfold, it remains to be seen how these matters will progress in court, especially since both Sun and the US Securities and Exchange Commission (SEC) have recently requested to pause their ongoing case to facilitate talks of settlement. This comes after the SEC initiated legal action against Sun and several of his entities in March 2023, citing concerns over securities laws violations related to the Tron network and associated platforms.
