CZ Denies Claims He Agreed to Testify Against Justin Sun in DOJ Deal

According to WSJ, unnamed sources claimed that CZ, as part of his high-profile settlement with U.S. authorities, was prepared to provide evidence that could be used in potential legal proceedings against other industry figures, with Justin Sun reportedly among them. The report hinted that CZ had signed an agreement allowing U.S. prosecutors to compel his testimony as a cooperating witness in future investigations.

CZ dismissed the report as “baseless,” asserting that he has no involvement in any such cooperation agreement involving Sun. In a sharply worded post on X, CZ wrote:

The insinuation that lobbying forces or rivals could be behind the negative press reflects a broader tension in the crypto industry, where regulatory scrutiny, legal battles, and reputational challenges often intersect with competition and geopolitics.

Justin Sun, the founder of TRON and a prominent figure in the blockchain industry, also issued a swift response to the allegations. He took to X and wrote:

The report has renewed focus on CZ’s legal case. In November 2023, he accepted responsibility for compliance lapses under the U.S. Bank Secrecy Act and stepped down as CEO of Binance as part of a broader settlement with U.S. authorities. He agreed to pay a $50 million personal fine, while Binance paid $4.3 billion to resolve investigations related to past shortcomings in its anti-money laundering controls and dealings with sanctioned entities, according to the DOJ and U.S. Treasury.

The broader context surrounding the DOJ’s crypto crackdown has cast a long shadow over many industry players. Justin Sun, for instance, has been under regulatory scrutiny in both the U.S. and internationally. In 2023, the SEC filed a civil complaint against Sun, accusing him of market manipulation and the unregistered offer and sale of securities. Sun has denied wrongdoing and remains active in the Web3 ecosystem through ventures like Poloniex and HTX.

Despite the high-profile rebuttals from both CZ and Sun, the WSJ report has fueled speculation about whether other prominent crypto leaders could face legal action. CZ’s legal team has not commented publicly beyond his social media statements, and neither the DOJ nor the SEC have confirmed whether any investigations involving Justin Sun are currently underway.

As the industry continues its march toward mainstream adoption, the saga highlights the ongoing battle over transparency, accountability, and reputation in crypto’s top echelons. For now, CZ remains defiant and Sun, at least publicly, remains undeterred. But the regulatory spotlight shows no sign of dimming.