Mystery Deepens: Binance Founder Changpeng Zhao Refutes DOJ Deal to Turn on Justin Sun

Binance founder Changpeng Zhao (CZ) is again at the center of a media storm, following a Wall Street Journal (WSJ) report claiming he agreed to assist U.S. prosecutors by providing evidence against Tron founder Justin Sun. The alleged cooperation was reportedly part of CZ’s plea agreement with the U.S. Department of Justice (DOJ). Although CZ hasn’t responded directly to the DOJ claim, he took to social platform X to criticize the WSJ for what he called another “baseless” attack on his name.

This latest development adds fuel to the ongoing saga between Zhao and the WSJ, which has previously accused him of pursuing political favors and controversial partnerships.

CZ Fires Back on Social Media

On April 11, CZ took a firm stand against the WSJ, posting on X (formerly Twitter) that the outlet was targeting him “again without any basis.” This isn’t the first time Zhao has sparred with the publication. Just weeks earlier, the WSJ accused Binance of seeking ties with a crypto venture linked to Donald Trump and even attempting to secure a pardon for Zhao—claims CZ labeled “pure fabrication.”

With the new DOJ angle now in play, the stakes have grown even higher. The WSJ alleges that Zhao agreed to testify or offer incriminating information about Justin Sun, who is currently under SEC investigation for regulatory violations.

Justin Sun Comes to CZ’s Defense

In a surprising twist, Justin Sun himself responded to the controversy by defending Zhao. He dismissed the allegations as “completely baseless” and referred to CZ as both a mentor and a personal friend. Sun also affirmed that Tron continues to maintain transparent communication with the DOJ. Additionally, he applauded Donald Trump’s crypto advocacy and expressed optimism about the U.S. crypto landscape under a potential new administration.

Binance Seeks a U.S. Comeback

Behind all the noise, Binance is quietly attempting to repair its standing in the U.S. crypto market. The exchange’s new CEO, Richard Teng, along with top Binance officials, recently held discussions with the U.S. Treasury Department. Their goal? To eliminate or reduce the oversight of an independent monitor appointed as part of the $4.3 billion penalty Binance paid in 2023. The monitor was imposed after Binance admitted to facilitating illegal financial activity.

At the same time, whispers in the industry suggest Binance is aligning itself with pro-Trump crypto ventures—most notably World Liberty Financial’s USD1 stablecoin. The token is reportedly backed by Justin Sun and linked to Trump-affiliated interests. A potential listing on Binance could bring major financial benefits—and, possibly, political goodwill.

What Lies Ahead?

As the U.S. government reconsiders crypto enforcement strategies, especially under a possible Trump resurgence, Binance appears to be repositioning itself. Despite his brief prison term, CZ remains a powerful figure behind the scenes. While he denies involvement with Trump-backed initiatives, his longstanding industry relationships may prove influential.

With the DOJ, SEC, Sun, and even the Trump family now entangled in this evolving narrative, the next steps for CZ—and Binance’s American revival—remain uncertain. But one thing is clear: the drama is far from over.