Former CEO of Binance, Changpeng Zhao, commonly known as CZ, has recently denied allegations that he agreed to provide evidence against Tron founder Justin Sun as part of a plea deal with the United States Department of Justice (DOJ). The Wall Street Journal had reported on April 11 that CZ had agreed to testify against Sun as part of his settlement with US prosecutors, citing unnamed sources familiar with the matter.
In response to these claims, CZ took to social media and wrote in a post on April 12, "WSJ is really TRYING here. They seem to have forgotten who went to prison and who didn't. People who become gov witnesses don’t go to prison. They are protected. I heard someone paid WSJ employees to smear me." This statement came after CZ had served a four-month prison sentence in April 2024 for Anti-Money Laundering (AML) violations, making him the wealthiest person to ever serve a US prison sentence with a net worth of $60 billion at the time of his release on September 27.
Justin Sun, on the other hand, responded to the rumors by stating that he was "not aware of the circulation rumors" and referred to CZ as his "mentor and close friend." Sun's comments were reported by Cointelegraph on April 11.
CZ also speculated that the report could be linked to lobbying efforts against him and his former company. He mentioned, “I also heard some rumors about some players ‘lobbying’ against us again in the US.” In November 2023, CZ had previously claimed that FTX sought regulatory actions against Binance to increase their market share, as reported by Federal Newswire.
Furthermore, the issue of political contributions within the crypto industry has been a topic of concern. In the 2024 US elections, crypto firms reportedly spent over $134 million in unchecked political spending, raising influence concerns among industry participants. A report by the Center for Political Accountability (CPA) highlighted that while companies may seek a favorable regulatory environment through such contributions, they also risk eroding public trust and facing legal and reputational challenges.
As the situation continues to unfold, CZ's denial of the allegations and the broader implications of political influence and lobbying within the crypto industry remain key points of interest. The crypto community will be closely monitoring developments to understand the full extent of these claims and their potential impact on the industry at large.
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