Binance's Ex-CEO Denies Assisting Prosecutors Against Tron Founder

Changpeng Zhao, the former CEO of Binance, has been accused of agreeing to assist prosecutors in their case against Justin Sun, the founder of Tron. According to an exclusive report, Zhao agreed to provide evidence against Sun as part of his plea deal. This information has not been previously reported and was cited by anonymous sources familiar with the matter.

CZ, as Zhao is commonly known, has vehemently denied these allegations. Prior to the report's publication, he posted on X that he had learned about the upcoming article, which he described as "another baseless hit piece." After the report was published, CZ further discredited it, stating that the publication seemed to have forgotten who had gone to prison and who had not. CZ pleaded guilty to violating anti-money laundering laws and was sentenced to four months in prison. He also agreed to pay a $50 million fine and was barred from involvement in Binance for three years.

CZ claims that his prison sentence is proof that he did not agree to inform on Sun, stating that individuals who become government witnesses do not go to prison; they are protected. However, this claim is not entirely accurate. While providing testimony or evidence against another individual can lead to benefits in a plea deal, such as a reduction in sentence or immunity, individuals can still be prosecuted if prosecutors obtain evidence of their crimes independently.

CZ has also denied previous claims made by the publication, stating that they had gotten the facts wrong. He admitted that while no convicted felon would mind a pardon, he has had no such discussions. CZ added that the article seemed motivated as an attack on the President and crypto, and that the residual forces of the “war on crypto” from the last administration were still at work.

Justin Sun, the founder of Tron, has also responded to the allegations. In an X post, Sun stated that he was not aware of the plea deal arrangement and that CZ is both his mentor and a close friend. He noted that CZ’s conduct and principles remain the highest standard he strives to follow as a founder. Sun was charged by the U.S. Securities and Exchange Commission for violating securities laws and engaging in fraud. The SEC alleged that the sale of TRON (TRX) and BitTorrent (BTT) tokens constituted unregistered securities offerings and that Sun engaged in illegal wash trading to inflate the price of TRX. The SEC’s allegations also included that Sun and his companies orchestrated a scheme where high-profile celebrities were paid to endorse TRX and BTT without disclosing their compensation.

While Sun was fighting to have the SEC’s case dismissed, on Feb. 26, Sun and the SEC jointly filed a request to pause the legal battle to allow for settlement negotiations. Sun’s legal team said that the negotiations could open a path to resolution without further litigation. Referring to the report in a separate X post, Sun said, “They always try to use rumors to drive us apart, to divide us instead of unite us.” He added that “standing together” was the only way to “change everything.”