Changpeng “CZ” Zhao, the former CEO of Binance, has rejected reports suggesting that he agreed to testify against Tron founder Justin Sun as part of a plea arrangement with the United States Department of Justice (DOJ).
On April 11, a news outlet cited unidentified sources claiming that Zhao had committed to providing evidence against Sun as part of his settlement with US prosecutors.
“Under the terms of Zhao’s plea agreement, he consented to testify on Sun to authorities,” the report noted, indicating that this “arrangement” had not been disclosed prior.
“This publication is really trying hard. They seem to have overlooked who is incarcerated and who is not,” Zhao stated in an April 12 post on X. “Individuals who become government witnesses typically do not face jail time. They are safeguarded. I’ve heard rumors that someone paid employees to tarnish my reputation.”
Image Source: Zhao
Zhao received a sentence of four months in prison in April 2024 due to Anti-Money Laundering (AML) violations. He was released from federal prison on September 27 as the wealthiest individual to serve a prison sentence in the US, boasting a net worth of $60 billion at that time.
In another post on April 11, Zhao alleged that various individuals had forewarned him about the outlet’s intentions to publish what he termed a “hit piece.”
Image Source: Sun
Sun stated that he was “unaware of the circulating rumors,” referring to CZ as his “mentor and close friend.”
“Some actors are lobbying against us again in the US” — CZ
Zhao further speculated that the report might be associated with lobbying efforts aimed at undermining him and his former company.
“I’ve also heard rumors about certain players ‘lobbying’ against us again in the US,” Zhao mentioned.
The outlet has reached out to Zhao for more information regarding the lobbying allegations.
In November 2023, Zhao remarked that “a certain organization pursued regulatory pressure on Binance to capture market share,” referencing a news report.
Zhao’s comments arrive more than a month after concerns regarding political donations from the crypto sector spurred discussions among industry insiders.
Crypto firms reportedly spent over $134 million on the 2024 US elections in “unregulated political contributions,” raising significant concerns, as reported earlier.
Donation Overview. Source: politicalaccountability.net
“While the companies making these contributions may be aiming for a favorable regulatory framework, such political donations further undermine public confidence and subject these companies to legal, reputational, and business risks that cannot be overlooked,” according to a report from the Center for Political Accountability.
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