Justin Sun downplays WSJ report of CZ cooperating with DOJ against him

Earlier this week, Binance’s co-founder stated he had received information about the report, which he dismissed.

Key Takeaways

• Justin Sun said he trusts CZ after a report of DOJ cooperation against him.
• Binance is negotiating with US Treasury to overcome federal monitoring after a 2023 guilty plea.

Justin Sun, the founder of TRON, has downplayed reports from The Wall Street Journal that Binance co-founder Changpeng “CZ” Zhao cooperated with the US Department of Justice (DOJ) against him.

The report, which surfaced on April 11, alleged that CZ agreed to provide evidence on Sun to prosecutors as part of his plea deal for violating anti-money laundering laws. The DOJ reportedly investigated Sun for suspected financial crimes under the Biden administration.

“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,” Sun stated.

The founder of TRON also stressed his close collaboration with US authorities, saying “the Department of Justice has been one of T3FCU’s closest and most trusted partners. Together, we’ve collaborated on numerous cases aimed at protecting users around the world.”

Sun maintained that his relationship with CZ and the DOJ remains professional and transparent.

“Whether it’s CZ or our partners at the DOJ, we maintain direct, honest communication at all times. I have full trust in each and every one of them,” Sun stated.

“They always try to use rumors to drive us apart, to divide us instead of uniting us. Crypto is already a small space—only by standing together can we change everything! We need every single one of your votes!” he noted in a separate statement.

Earlier this week, CZ, who was recently appointed Strategic Advisor to the Pakistan Crypto Council, said he had been informed about a forthcoming report from the publication that would focus on him.

Binance courts Trump ties in bid to regain US foothold, eyes stablecoin deal with WLFI: WSJ

According to the Wall Street Journal investigation citing sources familiar with the talks, executives from Binance met with US Treasury officials last month to push for reduced federal oversight, as the crypto exchange pursues a return to the US market.

Binance reportedly requested the removal of a US government monitor assigned to oversee the company’s compliance with anti-money laundering regulations, a condition of its $4.3 billion settlement with the DOJ in 2023.

The report also noted that Binance has been in discussions to list USD1, a new stablecoin issued by World Liberty Financial (WLFI), the DeFi venture backed by the Trump family.

The negotiations suggest a rapidly expanding alliance between Binance and the Trump family as the new administration signals a friendly stance toward the digital asset industry. The DOJ recently disbanded its crypto crimes unit and paused corporate monitoring, moves in line with what internal memos call the goal of “ending regulation by prosecution.”

The WSJ reported last month that representatives of the Trump family were exploring taking a stake in Binance.US, and that CZ was seeking a presidential pardon.

CZ denied the report, describing the allegations as attacks on both the President and the crypto industry.

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