The crypto spotlight is back on Binance founder Changpeng Zhao (CZ), as a new Wall Street Journal (WSJ) report claims he agreed to provide evidence against Tron founder Justin Sun as part of his plea deal with the U.S. Department of Justice (DOJ). While CZ has yet to comment directly on the allegation, he has slammed the WSJ for publishing what he calls another “baseless” attack.
CZ Pushes Back Amid Renewed Scrutiny
On April 11, CZ took to X, accusing the WSJ of attacking him “again without any basis.” This clash is the latest ongoing conflict between Zhao and the media outlet. Just last month, WSJ had reported that Binance was pursuing a partnership with a Trump-linked crypto venture and seeking a pardon for CZ claims he labeled as “pure fabrication.”
Now, with the new DOJ-related angle, the tension has escalated. According to the WSJ, CZ allegedly agreed to supply prosecutors with information on Justin Sun, who is under investigation by the SEC.
However, Justin Sun, in response, called the allegations “baseless” and publicly defended CZ, calling him both a mentor and a close friend. He stressed that Tron maintains honest and direct communication with the DOJ and praised President Trump’s crypto leadership, expressing confidence in the U.S. market.
Binance Eyes U.S. Comeback
The backdrop to this controversy is Binance’s renewed effort to rebuild its U.S. standing. The company’s leadership, including CEO Richard Teng, recently met with Treasury officials to push to reduce or eliminate the independent monitor currently overseeing its anti-money-laundering controls. That monitor was part of a $4.3 billion settlement following Binance’s 2023 guilty plea for allowing illicit financial activity on its platform.
Reports also suggest that Binance is aligning itself with Trump-linked ventures, specifically World Liberty Financial’s USD1 stablecoin, heavily backed by Justin Sun and the Trump family. A listing of the token on Binance could generate major profits while potentially opening the door for CZ’s pardon under a new administration.
The Bigger Picture
As U.S. crypto enforcement shifts under Trump-era changes, including the pause of DOJ monitorships, Binance appears to be positioning itself for a strategic return. CZ, despite serving a brief prison term, remains a central figure in the company’s vision for revival. While he denies ties to World Liberty Financial, insiders say CZ’s long-standing connections may play a key role in Binance’s next chapter.
With power players like Justin Sun, the Trump family, and the DOJ interests all converging, CZ’s future and Binance’s U.S. comeback hangs in the balance.
