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Sun Responds to Allegations
Tron founder Justin Sun has addressed recent rumors suggesting that former Binance CEO Changpeng “CZ” Zhao provided evidence against him as part of a plea deal with the U.S. Department of Justice (DoJ). Sun stated on April 11 that he is unaware of any such arrangement and emphasized his trust in both Zhao and the DoJ.
“I’m not aware of the circulating rumors. CZ is both my mentor and a close friend,” Sun posted on X (formerly Twitter). He added that Zhao has been instrumental in supporting his entrepreneurial journey.
Background on the Rumors
Speculation arose following a Wall Street Journal report alleging that Zhao agreed to cooperate with the DoJ by providing information on Sun. The report claimed this was part of Zhao’s plea deal related to anti-money laundering violations, for which he was sentenced to four months in prison in April 2024.
Zhao has not publicly addressed these specific allegations. However, prior to the report’s publication, he warned his followers on X about an impending “baseless hit piece” being written about him.
Sun’s Emphasis on Integrity
Sun praised Zhao’s integrity and stated that the DoJ is one of the “closest and most trusted partners” of the T3 Financial Crime Unit, which Tron co-founded alongside Tether and TRM Labs. He expressed his commitment to maintaining direct and honest communication with both Zhao and the DoJ.
“Whether it’s CZ or our partners at the DOJ, we maintain direct, honest communication at all times. I have full trust in each and every one of them,” Sun affirmed.
Ongoing Legal Matters
In a related development, Sun and the U.S. Securities and Exchange Commission (SEC) jointly requested a federal court to pause the SEC’s case against him to allow for settlement discussions. The SEC had previously sued Sun and three of his companies in March 2023.
