The focus on cryptocurrency is once again centered on Binance founder Zhao Changpeng, as a new report from the Wall Street Journal (WSJ) states that he agreed to provide evidence against Tron founder Sun Yuchen as part of his plea agreement with the DOJ. Although Zhao Changpeng has not directly commented on the allegations, he has harshly criticized the Wall Street Journal for what he calls yet another "baseless" attack.
CZ strikes back in a new round of scrutiny
On April 11, Zhao Changpeng accused the Wall Street Journal of attacking him "again without basis" on the X platform. This conflict is the latest in an ongoing dispute between Zhao Changpeng and the media outlet. Just last month, the Wall Street Journal reported that Binance was seeking to partner with a cryptocurrency firm linked to Trump and was seeking a pardon for Zhao Changpeng's alleged "fabricated" charges.
Today, with the emergence of DOJ-related allegations, tensions have escalated further. According to the Wall Street Journal, Zhao Changpeng reportedly agreed to provide information about Sun Yuchen to prosecutors, while Sun Yuchen is currently under investigation by the SEC.
However, Sun Yuchen responded by stating that these allegations are "baseless," publicly defending Zhao Changpeng as both a mentor and a close friend. He emphasized that TRON maintains honest and direct communication with the US Department of Justice and praised President Trump’s leadership in the cryptocurrency space, expressing confidence in the US market.
Binance aims to return to the US market
The backdrop of this controversy is Binance's renewed efforts to rebuild its standing in the United States. Company leadership, including CEO Richard Teng, recently met with officials from the US Department of the Treasury to advocate for a reduction or elimination of the independent oversight agency currently supervising its anti-money laundering controls. This oversight agency is part of the $4.3 billion settlement Binance reached after pleading guilty in 2023 to allowing illegal financial activities on its platform.
The report also indicates that Binance is aligning itself with Trump-related enterprises, particularly the $1 stablecoin from World Liberty Financial, which has strong backing from Sun Yuchen and the Trump family. The listing of this token on Binance could yield substantial profits while potentially opening the door for a new administration to pardon Zhao Changpeng.
The bigger picture
With the reforms in US cryptocurrency enforcement during the Trump era, including the suspension of DOJ oversight, Binance seems to be strategically preparing for a return. Despite Zhao Changpeng having served a brief prison sentence, he remains a central figure in the company's revitalization vision. Although Zhao Changpeng denies any connection with World Liberty Financial, industry insiders suggest that his long-standing connections may play a crucial role in Binance's next steps.
With the intertwined interests of power players like Sun Yuchen, the Trump family, and the US Department of Justice, Zhao Changpeng's future and Binance's path back to the US are precarious.
