Tron Founder Justin Sun Defends CZ Zhao Amid DOJ Rumors

Tron founder Justin Sun has publicly refuted rumors suggesting that Changpeng “CZ” Zhao, the former CEO of Binance, testified against him as part of a plea deal with the U.S. Department of Justice (DOJ).

In a post on X on April 11, Sun stated, “I have no idea about the common rumor. CZ is both my mentor and close friend.” This statement came in response to allegations that Zhao had cooperated with U.S. authorities by sharing information on Sun as part of his own plea deal, as reported in an article. Zhao was jailed for four months in April of 2024 for breaching Anti-Money Laundering (AML) laws.

Sun emphasized his strong working relationship with Zhao, noting, “He has been an important role in being supportive of me in my entrepreneurial life.” This statement underscores the trust and mutual respect between the two figures in the cryptocurrency industry.

Sun and the Securities and Exchange Commission (SEC) jointly requested in February of 2025 to halt the regulator’s suit against him to pursue settlement options. The suit, filed in March of 2023, alleges that Sun and three of his companies — the Tron Foundation, BitTorrent Foundation, and Rainberry Inc. — sold unregistered securities. Zhao has not publicly addressed the latest accusations but had previously warned on X about an impending “baseless hit piece” being prepared.

Sun reaffirmed his trust in Zhao’s integrity and that of the DOJ, stating, “To this day, his conduct and values are the best code I aspire to live by as a founder.” He also praised the DOJ as among the most revered partners of the T3 Financial Crime Unit — a collaboration co-founded by Tron, Tether, and TRM Labs.

“Whether it’s CZ or our DOJ counterparts, we’re always directly, openly communicating. I have complete confidence in each and every one of them,” Sun concluded, highlighting his unwavering trust in the integrity of both Zhao and the DOJ.