CZ Denies Claims About Testifying Against Justin Sun

Binance is once again in the spotlight due to WSJ reports about possible negotiations with representatives from the U.S. Department of the Treasury. According to the report, the exchange’s executives discussed the potential removal of one of the independent monitors overseeing anti-money laundering (AML) compliance.

The report also raises the controversial topic of Binance founder Changpeng Zhao (CZ) possibly cooperating with prosecutors in a case against Tron founder Justin Sun. However, both executives strongly deny these claims, emphasizing their mutual trust and expressing dissatisfaction with how some media outlets have presented the story.

Reactions from CZ and Justin Sun

Binance CEO Changpeng Zhao (CZ) called the WSJ article baseless and accused it of trying to damage his reputation.  

WSJ is really TRYING here. They seem to have forgotten who went to prison and who didn't. People who become government witnesses don't go to prison. They are protected. I heard someone paid WSJ employees to smear me,

CZ wrote in a post on X.

Tron founder Justin Sun also shared his view on the controversy, saying he hasn’t heard any such rumors and emphasizing his respect for CZ as both a mentor and a close friend.

I’m not aware of the circulating rumors. CZ is both my mentor and a close friend—he has played a crucial role in supporting me during my entrepreneurial journey,

Justin Sun wrote in a post on X.

Meeting with U.S. Treasury Officials

According to WSJ, Binance discussed the possibility of ending oversight by the financial division of FinCEN.

Previously, the exchange was subject to two monitoring arrangements: 

• A three-year mentorship with the FRA
• A five-year monitoring program led by Sharon Cohen Levin of Sullivan & Cromwell, appointed by a U.S. financial authority. 

In addition, WSJ reports that the exchange is negotiating with the Trump-linked crypto project World Liberty Financial to list a new stablecoin, USD1, which will be backed by short-term Treasury bonds, U.S. dollar deposits, and other liquid assets.

Related: Warren Demands SEC Release Information on WLFI, Investigating Trump Ties

Recent events show rising tension in the crypto sector’s regulatory landscape, driven by attempts to adapt to changing laws and ongoing disputes among industry leaders. 

Some voices argue that the way information spreads may be part of a targeted disinformation campaign. At the same time, the positions of key players point to a continued sense of mutual trust within certain corners of the crypto market.

Related: FDUSD Stablecoin Depegs Following Justin Sun’s Claims: Here’s What Happened