Binance's CZ Denies Testimony Deal, Cites Political Motivation

Changpeng “CZ” Zhao, the former CEO of Binance, has strongly denied allegations that he agreed to provide evidence against Justin Sun, the founder of Tron, as part of a plea deal with the United States Department of Justice. These claims, which emerged in an April 11 report, were dismissed by Zhao as unfounded and politically motivated. The report, which relied on unnamed sources, suggested that Zhao had agreed to testify against Sun as part of his settlement with US prosecutors. Zhao, however, took to social media to refute these allegations, stating that individuals who become government witnesses typically do not face prison sentences, and he implied that the report was a smear campaign.

Zhao was sentenced to four months in prison in April 2024 for Anti-Money Laundering (AML) violations. He was released from federal prison on September 27, 2024, with a net worth of $60 billion at the time, making him the wealthiest person to ever serve a US prison sentence. In a separate post on April 11, Zhao claimed that multiple individuals had warned him about the intentions of the Journal to publish what he described as a "hit piece." Sun, on the other hand, stated that he was unaware of the rumors and referred to Zhao as his "mentor and close friend."

Zhao further speculated that the report could be linked to lobbying efforts against him and his former company in the US. He mentioned rumors about certain players lobbying against them, although he did not provide specific details. In November 2023, Zhao had claimed that FTX sought a regulatory "crackdown" on Binance to increase its market share, citing a Federal Newswire report. Zhao's comments come over a month after crypto donations raised influence concerns among industry participants. Crypto firms spent a significant amount on the 2024 US elections, which presents some critical challenges. These political donations further erode public trust and expose companies to legal, reputational, and business risks that cannot be ignored.