The Wall Street Journal has just published another explosive report claiming CZ has agreed to turn on his long-time ally and friend and has provided evidence against Tron Founder Justin Sun as part of his terms of settlement with the United States Department of Justice (DOJ).

WSJ wrote in its article

"As part of Zhao's plea deal, he agreed to give evidence on Sun to prosecutors, an arrangement that hasn't previously been reported."

CZ has responded by calling this a smear campaign, claiming that this move is a concerted effort from competing competitors to take Binance and CZ down.

CZ says: “People Who Become Gov Witnesses Don’t Go to Prison!”

CZ wasted no time in responding to the rumours, saying WSJ is really trying here. CZ further pointed out that witnesses doesn't usually end up in jail because they are protected by the government; but the fact that CZ was previously convicted to jail is basically concrete evidence to disprove the article.

CZ further speculated that the Wall Street Journal has been bought over to launch a smear campaign against him and Binance in an effort to tarnish his reputation.

Binance is under scrutiny by the U.S Prosecutors for breaking anti-money laundering laws by allowing terrorists, drug traffickers to make payments to one another through the exchange.

U.S prosecutors are alleging that Binance did nothing, although they knew all these illegal transactions were occurring right under their nose.

Justin Sun stands by CZ

Shortly after CZ's statements, Justin Sun also posted on his social media, stating he was not aware of the circulating rumours.

Sun also expressed his complete trust in CZ, someone he have always viewed as a mentor. He also adds his trust extends to the DOJ, who was one of Tron's closest and most trusted partners.

"To this day, his conduct and principles remain the highest standard I strive to follow a a founder. Whether it's CZ or our partners at the DOJ, we maintain direct, honest communications at all times. I have full trust in each and every one of the them."

A smear campaign to bring down Binance

CZ speculates that the report could be linked to lobbying efforts against him and his former company. CZ wrote on X

"I also heard some rumours about some players 'lobbying' against us again in the U.S."

CZ used FTX's attack in November 2023 as an example. Back then, FTX sought regulatory crack down on Binance to increase market share. This article could therefore be a similar attack either by FTX or maybe another competing company, to really bring Binance down.

This is not the only allegation WSJ has used to smear Binance's reputation. In the same news piece, WSJ also accused Binance of striking an under-the-table deal with Trump's family business in an effort to gain a presidential pardon for Binance.

In the article, WSJ claimed that in exchange for the plea, Binance has promised to help Trump's World Liberty Financial push its new stablecoin.

This crucial push from Binance could very well make the WLF one of the most powerful stablecoins in the market, and more importantly generate millions of dollars for Trump and his family.

Binance eyes U.S comeback

This latest controversy emerges as Binance works to rebuild its reputation in the United States. Under the leadership of CEO Richard Teng, Binance has been in an effort to ease regulatory oversight and resolve all of its legal troubles.

As such, Binance had no quelms paying a whopping $4.3 billion settlement in 2023 to bury its Anti-money laundering allegations underground.

This latest controversy highlights the intense scrutiny facing crypto’s biggest players. With regulatory agencies ramping up enforcement and media outlets chasing sensational headlines, the reputations of industry leaders like CZ and Sun are constantly under threat. As the crypto sector continues to evolve, the battle between transparency, regulation, and media narratives is only set to intensify.