Changpeng Zhao, known as CZ BNB, former Binance CEO, faces a wave of ‘smear’ allegations tied to a reported plea deal. Wall Street Journal claimed CZ agreed to testify against Justin Sun to secure leniency in his 2023 legal settlement, although both men publicly denied the claims.
This so called ‘drama’ comes after CZ’s guilty plea to anti-money laundering violations, resulting in a four-month prison sentence. Released in September 2024, he’s now addressing reports that he provided evidence against Sun.
CZ called the story a “baseless hit,” noting that he served time and was far from typical government witnesses. Sun agreed, affirming their friendship and dismissing the rumors as unfounded.
Multiple people have told me again WSJ is writing another baseless hit piece about me. 4
— CZ
BNB (@cz_binance) April 11, 2025
DISCOVER: Next 1000X Crypto: 10+ Crypto Tokens That Can Hit 1000x in 2025
The Baseless Hit and Where It Hits
Today, many view this smear as a targeted attack, possibly fueled by regulatory pressures or rival interests. Support for CZ and Sun is strong among loyalists, who see them as industry pioneers. However, some question the transparency of plea deals, questioning their trust in centralized exchanges.
CZ’s response on social platforms was sharp, suggesting the news outlet was paid to smear him. He argued that serving jail time contradicts claims of being a protected witness. This goes along with his supporters from the crypto community, who rallied behind his defiance.
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.
https://t.co/xqpnBwvlmi
— CZ
In addition, Justin Sun comes at a defense of CZ, his “mentor.” He praised CZ’s integrity, urging unity in crypto’s “small space.” This struck a chord with supporters, who see regulatory scrutiny as a shared threat.
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. To this day, his conduct and principles remain the highest standard I strive to follow as a founder.
At the same…
— H.E. Justin Sun
(@justinsuntron) April 12, 2025
In the aftermath, the community feels the frustration from media narratives. Many dismiss the story as an attempt to divide key figures like CZ and Justin Sun and their contributions from Binance’s global reach to Tron’s DeFi ecosystem. Still, a vocal minority demands clarity, wary of hidden agreements in high-stakes legal battles.
DISCOVER: The 12+ Hottest Crypto Presales to Buy Right Now
From Smear to Drama: Justin Sun and CZ Aren’t Saints
Adding to the drama, reports suggest Binance executives met US Treasury officials to reduce oversight from a monitor appointed after a $4.3 billion settlement.
These talks coincided with discussions to list USD1, a stablecoin tied to a Trump-backed venture where Sun is an investor. Critics see this as a potential conflict, while Binance calls oversight burdensome, seeking “fine-tuning” of compliance rules.
On the other hand, the SEC paused a fraud case against Justin Sun in February 2025, after his $75 million investment in the Trump-linked project. Some speculate this timing aligns with Binance’s maneuvers, hinting at political plays.
BREAKING
The SEC has just halted its fraud prosecution of Justin Sun, a Chinese national who has put more than $50 million in Trump’s pocket since November through the purchase of crypto tokens from a Trump-backed company, World Liberty Financial. pic.twitter.com/KzPqC6Frht
— Judd Legum (@JuddLegum) February 28, 2025
Further drama comes from Binance’s rumored ties to Trump’s circle. Talks of a Binance US stake acquisition by Trump’s WLFI surfaced, which CZ, again, denied.
Taking advantage of the situation, Polymarket bettors give a 18% chance of this deal by July 2025. Bettors view this as political leverage, with CZ’s pardon hopes occasionally mentioned, though unconfirmed.
(source)
It’s a big saga. It displays crypto’s complex interplay of loyalty, regulation, and power. With their loyalty as a community, cryptobros are staying strong on their ground defending CZ and Justin Sun, but lingering questions about plea deals and political ties keep the drama simmering.
Some of those that work forces are the same that burn crosses
DISCOVER: Best Meme Coin ICOs to Invest in April 2025
Join The 99Bitcoins News Discord Here For The Latest Market Updates
Key Takeaways
- What does WSJ say, and what’s the aftermath?
- The Cryptobros community is backing both CZ and Justin Sun. But are they the crypto saints?
The post Ex-Binance Boss CZ Slams ‘Smear’ Allegations Over Justin Sun in Plea Deal Drama appeared first on 99Bitcoins.
