Changpeng Zhao (CZ), former CEO of Binance, has denied reports of his potential cooperation with the U.S. Department of Justice against Justin Sun. This news emerged following a publication in the WSJ, which claimed that Zhao allegedly agreed to testify against Sun, citing anonymous sources.
This is reported by Finway
On his social media page on X (formerly Twitter), Zhao refuted this information, stating:
“WSJ is really trying here”
. He emphasized that prosecution witnesses do not serve time, and his own four-month prison term suggests otherwise. CZ believes that the publication is part of a political campaign against him and his company.
Justin Sun’s Reaction
Justin Sun, for his part, expressed his support for Zhao, noting that he had not heard any accusations against his friend and mentor. He emphasized his trust in CZ and urged the crypto industry to remain united:
“They always try to use rumors to divide us”
.
Political Risks for the Industry
The situation surrounding the crypto industry in the U.S. raises concerns, as the Center for Political Accountability (CPA) reports that cryptocurrency companies spent $134 million on political campaigns in 2024. This creates risks for the industry’s reputation and undermines investor confidence.
It is worth noting that Pakistan recently appointed Changpeng Zhao as an advisor on crypto assets.