According to the Wall Street Journal on April 12, citing anonymous sources, former Binance CEO Zhao Changpeng (CZ) secretly agreed to assist prosecutors in investigating Tron founder Justin Sun as part of a plea agreement with the U.S. Department of Justice. This news immediately triggered strong reactions from two industry giants.
However, just before the report was published, CZ had already warned on social media X that he had learned that the Wall Street Journal was preparing "another baseless attack article." After the report came out, he directly retorted: "The Wall Street Journal is really trying to smear me. But they seem to have forgotten who went to prison and who didn't."
CZ also emphasized that he had already served four months of his sentence in the U.S., and that "real government informants do not end up in prison." He also stated that he had heard earlier that someone was paying the Wall Street Journal to smear him.
As another main character in the incident, Justin Sun also responded. He stated that CZ is a "mentor and close friend" and expressed that he was "completely unaware" of the so-called reporting agreement, accusing it of being a rumor aimed at dividing the cryptocurrency industry, and encouraged the industry to unite to change the current situation.
Justin Sun is currently embroiled in legal disputes with the SEC, accused of violating securities laws through the sale of TRX and BTT tokens, as well as market manipulation and bribing celebrity endorsements. Notably, he reached an agreement with the SEC in February to suspend litigation for settlement negotiations.
This is not the first time the Wall Street Journal has reported controversial content involving CZ. Just last month, the paper revealed that CZ attempted to seek a pardon from Trump and claimed that the Trump family intended to invest in Binance US. At that time, CZ denied the report, stating that it "distorted the facts," although he acknowledged that no convicted felon would refuse a pardon opportunity, he emphasized that no related discussions had ever taken place.
The entire incident reflects the severe regulatory situation facing the cryptocurrency industry. Last year, Binance paid a record $4.3 billion in fines, and CZ personally was fined $50 million and banned from the industry for three years. Meanwhile, Justin Sun's Tron continues to be relentlessly pursued by the SEC.
The strong denial from the two industry leaders regarding the Wall Street Journal's report reflects not only the defense of their personal reputations but also the efforts of crypto magnates to maintain industry unity under regulatory pressure. However, as U.S. regulatory agencies continue their in-depth investigations into the crypto industry, this storm is likely just the tip of the iceberg.
What do you think, who do you support more? Do you believe they are truly being used by certain forces?