Ex-Binance Chief CZ Criticizes ‘Defamation’ Claims Regarding Justin Sun in Plea Bargain Controversy
Changpeng Zhao, better known as CZ BNB, the ex-CEO of Binance, is confronted with a barrage of ‘smear’ accusations linked to a suggested plea agreement. The Wall Street Journal asserted that CZ consented to testify against Justin Sun in trading protocol for more favorable treatment in his 2023 legal settlement; however, both individuals have publicly rejected these assertions.
This alleged ‘drama’ follows CZ’s admission of guilt to anti-money laundering infractions, leading to a four-month prison term. Having been released in September 2024, he is currently addressing assertions that he supplied incriminating information against Sun.
CZ characterized the narrative as a “groundless attack,” emphasizing his past imprisonment and highlighting that he does not fit the mold of typical government informants. Sun endorsed this sentiment, underscoring their friendship and labeling the rumors as baseless.
Once again, I’ve been told that WSJ is publishing another unfounded smear piece about me. 4
— CZ
BNB (@cz_binance) April 11, 2025
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The Groundless Attack and its Impact
Currently, many perceive this smear as a deliberate assault, potentially driven by regulatory pressures or competing interests. Support for CZ and Sun remains robust among their followers, who consider them trailblazers in the industry. Nevertheless, some individuals express skepticism regarding the transparency of plea agreements, casting doubt on their trust in centralized exchanges.
CZ’s reaction on social media was pointed, implying that the update outlet might have been incentivized to tarnish his reputation. He argued that serving a prison sentence contradicts the idea of him being a protected informant. This viewpoint is echoed by his advocates from the digital currency community, who have rallied to base level his resistance.
WSJ is genuinely TRYING here. They’ve seemingly forgotten who actually went to prison and who didn’t.
Those who become government witnesses don’t end up in prison. They receive safety.
I heard someone funded WSJ staff to defame me.
— CZ
Furthermore, Justin Sun has come forward to defend CZ, referring to him as his “mentor.” He commended CZ’s honesty, advocating for solidarity in the crypto “niche.” This resonated with supporters, who view regulatory scrutiny as a collective threat.
I’m unaware of the rumors that are circulating. CZ is both a mentor and a dear friend of mine—he has been instrumental in supporting me throughout my entrepreneurial journey. Even today, his ethics and values are the gold standard I aim to emulate as a founder.
At the same…
— H.E. Justin Sun
In the wake of these events, the community is expressing dissatisfaction with the media’s portrayal. Many dismiss this narrative as an effort to sow discord among pivotal figures like CZ and Justin Sun, as well as to obscure their respective contributions to Binance’s expansive influence and Tron’s DeFi landscape. Nevertheless, a vocal minority is calling for transparency, apprehensive about potential undisclosed agreements in these high-stakes legal dramas.
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From Smear to Drama: Justin Sun and CZ Are Not Saints
Compounding the drama, reports indicate that Binance executives met with officials from the US Treasury to lessen oversight stemming from a monitor assigned after a $4.3 billion settlement.
These negotiations coincided with talks to launch USD1, a stablecoin associated with a Trump-backed initiative where Sun is an investor. Critics view this as a potential conflict, while Binance deems the oversight excessive, seeking “fine-tuning” of compliance standards.
Additionally, the SEC suspended a fraud case against Justin Sun in February 2025, following his $75 million investment in the Trump-affiliated project. Some people speculate that this timing is intertwined with Binance’s strategies, suggesting political maneuvering.
BREAKING
The SEC has just halted its fraud case against Justin Sun, a Chinese national who has funneled over $50 million into Trump’s campaign since November through the acquisition of crypto tokens from a Trump-supported company, World Liberty Financial. pic.twitter.com/KzPqC6Frht
— Judd Legum (@JuddLegum) February 28, 2025
Further intrigue arises from rumored connections between Binance and Trump’s circle. Talks about a possible acquisition of a Binance US stake by Trump’s WLFI have emerged, which CZ has again refuted.
Taking advantage of the unfolding situation, Polymarket gamblers are estimating an 18% likelihood of this deal materializing by July 2025. Bettors perceive this as a form of political leverage, with CZ’s hopes for a pardon being casually mentioned, although this remains unverified.
(source)
This saga highlights the intricate dynamics of loyalty, compliance, and influence within the crypto landscape. With their community’s loyalty, crypto advocates are staunchly defending CZ and Justin Sun, yet persistent inquiries regarding plea deals and political connections keep the narrative alive.
Some of those that work forces are the same that burn crosses
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Key Points
- What does WSJ report, and what are the consequences?
- The Cryptobros community is supporting both CZ and Justin Sun. But are they the heroes of crypto?
The post Ex-Binance Boss CZ Denounces ‘Smear’ Allegations Against Justin Sun in Alleged Plea Deal Controversy appeared first on 99Bitcoins.
