CZ claps back against ‘baseless’ US plea deal allegations

Binance founder Changpeng "CZ" Zhao has strongly denied allegations from a Wall Street Journal (WSJ) report claiming he cooperated with U.S. authorities to provide evidence against Tron founder Justin Sun as part of a plea deal.

CZ labeled the claims as "baseless" and accused the WSJ of conducting a smear campaign against him. He emphasized that individuals who act as government witnesses are typically protected and do not serve prison time, contrasting this with his own four-month incarceration in 2024 for Anti-Money Laundering (AML) violations.

The WSJ report alleged that CZ had agreed to testify against Sun under the terms of his settlement with U.S. prosecutors. CZ responded on social media, stating that he had been warned about the publication of what he described as a "hit piece" and suggested that lobbying efforts might be behind the report. Tron founder Justin Sun also dismissed the allegations, calling CZ his "mentor and close friend" and expressing confidence in CZ's integrity.

The controversy follows CZ's release from prison in September 2024, marking him as the wealthiest individual to have served a U.S. prison sentence, with a net worth of $60 billion at the time.

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