Changpeng Zhao (CZ), the former CEO of Binance, is facing backlash over purported ‘smear’ allegations regarding his interactions with Justin Sun related to a plea deal. Reports from the Wall Street Journal indicate that Zhao may have agreed to testify against Sun to ease penalties in his 2023 legal issues, claims that both parties have publicly refuted.
This controversy arose following CZ’s guilty plea for anti-money laundering infringements, culminating in a four-month prison term. After his September 2024 release, he started addressing the implications of potentially providing testimony against his colleague Sun.
CZ characterized the allegations as a “baseless hit,” highlighting his own incarceration as contrary to the profile of a typical government informant. Sun echoed these sentiments, labeling the rumors unfounded and reinforcing their friendship.
“Multiple people have told me again that WSJ is writing another baseless hit piece about me. 4 😂”
— CZ 🔶 BNB (@cz_binance) April 11, 2025.
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The Baseless Hit and Where It Hits
Many view the ongoing narrative as a strategic attack likely seeded by regulatory pressures or competitive motivations. Among their supporters, CZ and Sun are celebrated as trailblazers in the crypto sector despite growing skepticisms regarding plea deal transparency, causing rifts in trust surrounding centralized exchanges.
CZ’s reactions across social media have been robust, suggesting that the publishing house is being incentivized to tarnish his reputation. He stated that his time served counters allegations of being a protected informant and drew on support from the crypto arena that continues to back him vehemently.
“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. They are protected.🤷♂️”
— CZ 🔶 BNB (@cz_binance) April 12, 2025.
Sun, in turn, defended CZ, calling him his “mentor” and suggesting that the field should rally in the face of shared regulatory scrutiny.
“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. To this day, his conduct and principles remain the highest standard I strive to follow as a founder.”
— H.E. Justin Sun 🍌 (@justinsuntron) April 12, 2025.
Recent developments reveal that Binance executives are allegedly engaging with U.S. Treasury representatives to lessen scrutiny stemming from a $4.3 billion settlement.
Meanwhile, Justin Sun’s connections to a Trump-backed stablecoin venture have led to queries regarding their timing in relation to regulatory interventions against him, with speculation rife about the political dynamics in play.
BREAKING: The SEC has just halted its fraud prosecution of Justin Sun, who has significantly contributed to Trump’s campaign financially via crypto token transactions.
— Judd Legum (@JuddLegum) February 28, 2025.
As the saga unfolds, it showcases crypto’s complex ties to loyalty, regulatory efforts, and internal power struggles, while compelling the community to keep defending the integrity and contributions of figures like CZ and Sun amidst a backdrop of potential political maneuverings.
