- Zhao denies claim he agreed to testify against Justin Sun in DOJ case.
- Sun says he’s unaware of the rumours and calls Zhao a mentor.
- Polymarket odds show a rising chance of a Trump stake deal in Binance.
Binance co-founder Changpeng Zhao and TRON founder Justin Sun are pushing back after a Wall Street Journal report claimed Zhao agreed to provide evidence against Sun as part of his 2023 plea deal with US authorities.
The story, published Friday, details Binance’s recent push to reduce US oversight while pursuing business ties with World Liberty Financial, a crypto firm backed by Donald Trump’s family.
It cites unnamed sources who allege Zhao, who served a four-month sentence for anti-money-laundering violations during his time as CEO of Binance, offered to assist prosecutors investigating Sun, who is facing separate SEC and DOJ scrutiny.
But both men deny the claim.
“Multiple people have told me again WSJ is writing another baseless hit piece about me,” Zhao wrote on X.
Sun, who was named in the report as the target of the alleged cooperation deal, responded: “I’m not aware of the circulating rumors,” he wrote. “CZ is both my mentor and a close friend. They always try to use rumours to drive us apart. Only by standing together can we change everything.”
Trump talks
The WSJ also reported that Sun invested $75 million dollars into World Liberty’s stablecoin, USD1 — a move that coincided with the SEC pausing its fraud case against him.
According to the report, Binance executives viewed the investment as a playbook for how to improve relations with a crypto-friendly Trump administration.
Zhao has also denied a separate WSJ article published last month, which claimed Trump family members were in talks to acquire a stake in Binance’s struggling US affiliate. “I have had no discussions of a Binance US deal with… well, anyone,” he wrote.
Bettors on the Polymarket prediction platform currently assign a 22% chance that the Trump family will take a stake in the exchange before July.
Binance is said to be optimistic that a second Trump term could help unwind restrictions imposed after the exchange’s record $4.3 billion settlement with US authorities.
Internally, the company has discussed seeking a presidential pardon for Zhao, though neither the White House nor the DOJ has confirmed whether he’s under consideration.
Crypto market movers
- Bitcoin has gained 2.6% over the past 24 hours and is trading at $83,490.
- Ethereum is up 2.8% in the same period to $1,590.
What we’re reading
Kyle Baird is Inside Solana’ Weekend Editor. Got a tip? Email at kbaird@dlnews.com.
