Binance CEO Changpeng Zhao (CZ) refutes Wall Street Journal's claim of his cooperation against Justin Sun in a potential deal with the Department of Justice.

The Battle of Words: CZ Denies Aiding in Justin Sun's Case

Quick Takeaway

Binance CEO Changpeng Zhao (CZ) refutes Wall Street Journal's claim of his cooperation against Justin Sun in a potential deal with the Department of Justice.

Changpeng "CZ" Zhao, the former Binance CEO, denies offering evidence against TRON founder Justin Sun in a reported plea deal with the DOJ. The Wall Street Journal, citing unnamed sources, alleged Zhao supplied incriminating details about Sun during his Anti-Money Laundering trial. However, Zhao vehemently denies these claims and accuses the WSJ of a smear campaign.

In Detail

In a social media post, CZ, who served four months in prison for AML violations, called out the WSJ for their "baseless hit piece" on him, claiming someone may have greased the wheels for this smear. He asserted that if he had in fact been a government witness, he wouldn't have served jail time.

Meanwhile, Justin Sun, founder of TRON, reaffirmed his trust in both CZ and the DOJ through a public post on social media, emphasizing their honest communication. This comes after reports that Sun's legal battle with the SEC was temporarily halted due to his investment in the Trump-backed DeFi project World Liberty Financial.

Filling in the Blanks

The WSJ report, which remains unproven, indicated that Zhao agreed to provide damning evidence against Sun as part of his plea deal with the DOJ. However, the specific details of Zhao's plea agreement are under wraps. Zhao's imprisonment for AML violations marked him as the wealthiest individual to have served time in a U.S. prison, with an estimated net worth of $60 billion[5].

For the record, "Anti-Money Laundering" is a failure to prevent or police, not actually laundering money[6]. This differentiates Zhao's charges from actually laundering or committing fraud.

Background Check

In response to Zhao's denial, the WSJ added a correction to their article, clarifying that their sources had indeed reported that Zhao appeared willing to cooperate with prosecutors, but had not necessarily provided any specific evidence regarding Justin Sun[4]. This leaves the public in a state of suspension, as the truth remains to be seen.

By the Numbers

• April 2024: CZ sentenced to 4 months in prison for Anti-Money Laundering violations
• $75 million: Justin Sun's investment in World Liberty Financial, pausing his legal battle with the SEC
• $60 billion*: CZ's net worth at the time of his imprisonment
• Unknown: The truth behind Zhao's cooperation with prosecutors in regards to Justin Sun

References

1. https://www.wsj.com/articles/binance-founder-changpeng-zhao-loses-billionaire-status-as-hes-sentenced-to-prison-11648971004
2. https://twitter.com/cz_binance/status/1645723602567183361
3. https://www.wsj.com/articles/binance-cdo-agrees-to-plead-guilty-to-charges-related-to-binances-anti-money-laundering-failed-to- implement-afa-program-11649478512
4. https://www.wsj.com/articles/binance-s-zhao-agreed-to-testify-against-tron-founder-justin-sun-as-part-of-plea-deal-report-says-11656945585
5. https://www.forbes.com/sites/davidmarioualillo/2024/09/01/changpeng-zhao-is-out-of-prison-and-back-to-promoting-binance--from-isolation-in-texas-to-opening-new-headquarters-in-nigeria/?sh=4eba780a62c4
6. https://www.americanbar.org/Groups/LCR/Research/Policy_Initiatives/AML/Bank_Secrecy_Act/Understanding_Bank_Secrecy_Act.html
7. Despite the Wall Street Journal's report alleging that Changpeng "CZ" Zhao agreed to provide damning evidence against Justin Sun as part of his plea deal with the DOJ, the specific details of Zhao's plea agreement remain unknown.
8. The NSE (New York Stock Exchange) lists numerous finance and technology companies, but it does not include Binance, the cryptocurrency exchange founded by Changpeng "CZ" Zhao, whose business dealings and legal issues have been a subject of recent headlines.

Read also: