Justin Sun denies rumors surrounding CZ plea deal
Justin Sun denies rumors that CZ cooperated with DOJ against him.
Tron founder Justin Sun has publicly denied knowledge of rumors alleging that former Binance CEO Changpeng “CZ” Zhao cooperated with U.S. authorities to provide evidence against him.
The claims surfaced following an April 11 report by The Wall Street Journal, which cited unnamed sources claiming Zhao’s plea deal with the Department of Justice (DOJ) included cooperation targeting Sun, reports Cointelegraph.
“I’m not aware of the circulating rumors. CZ is both my mentor and a close friend,” Sun wrote on X. He praised Zhao for his integrity and support throughout his entrepreneurial career, further noting that the DOJ remains one of the most trusted partners of the T3 Financial Crime Unit — a group co-founded by Tron, Tether, and TRM Labs.
The allegations emerged months after Zhao was sentenced to four months in prison for anti-money laundering violations. Though Zhao has not addressed the specific report, he posted a cryptic warning to his 10 million followers on X the day before the article was published, suggesting a “baseless hit piece” was imminent.
Legal backdrop and broader implications
Sun’s name has been embroiled in legal proceedings since March 2023, when the U.S. Securities and Exchange Commission (SEC) sued him and three of his companies for allegedly offering and selling unregistered securities, as well as manipulating token trading volumes. In February 2025, both Sun and the SEC requested a pause in the case to pursue settlement talks.
The suggestion that Zhao, who walked free from prison in September 2024, might be cooperating with federal authorities adds fresh uncertainty to Sun’s legal outlook. With Zhao’s high-profile sentencing and net worth estimated around $60 billion, his involvement in any investigation carries significant weight.
If substantiated, the alleged cooperation could complicate Sun’s legal strategy and potentially expose further ties between major crypto leaders and regulatory enforcement actions. For now, both figures remain silent on the legal specifics, while industry observers await formal updates from the DOJ or SEC.
Recently we wrote, that the U.S. Securities and Exchange Commission (SEC) and cryptocurrency exchange Binance have jointly requested a 60-day pause in their ongoing legal proceedings, citing progress in settlement negotiations.
