Former Binance CEO Changpeng Zhao (CZ) has strongly denied recent accusations linking him to criminal misconduct, asserting that he has never been charged with money laundering or fraud. The response comes after media reports and public commentary alleged deeper involvement in illegal activities as part of his plea deal with U.S. authorities.
CZ Responds to Allegations
CZ’s comments were a direct response to a viral report by the Wall Street Journal, which claimed Zhao agreed to testify against Tron founder Justin Sun in exchange for a more lenient sentence. According to the WSJ, Zhao would serve as a key witness for the U.S. Department of Justice (DOJ) as part of an ongoing crackdown on crypto-related crimes.
Zhao dismissed the allegations, stating that multiple agencies had closely examined his conduct and found no fraudulent behavior. He emphasized that customer funds remained safe and secure throughout his tenure.
Ari Paul vs. CZ
The controversy escalated when BlockTower Capital founder Ari Paul publicly accused Zhao of avoiding a lengthy sentence by providing the DOJ with insider information on others in the crypto industry. Paul claimed that Zhao could have faced more than 25 years in prison if not for this alleged cooperation.
He argued that the U.S. government prioritized obtaining information about the broader crypto ecosystem over pursuing additional charges against Zhao.
In response, Zhao clarified that there is a significant legal difference between anti-money laundering violations—essentially a failure to enforce oversight—and actually participating in laundering money. He accused Paul of misrepresenting the facts and spreading misinformation.
WSJ Accused of Bias
Zhao also took aim at the Wall Street Journal, suggesting its journalists were financially motivated to damage his reputation. He questioned the credibility of the outlet’s reporting and its sources, implying that the narrative being spun was intentionally misleading.
He further noted the inconsistency in the witness protection claim, pointing out that individuals in witness protection do not serve time in federal prison, yet he had already done so at a low-security facility in Lompoc, California.
Support from Justin Sun
Amidst the accusations, Justin Sun offered public support for Zhao. He denied knowing anything about Zhao cooperating with the DOJ and expressed admiration for him, calling him both a mentor and a close friend.
Sun’s comments appeared to contrast with the idea that Zhao had turned on his peers within the industry, adding another layer of complexity to the ongoing debate.
“The Most Regulated Person on the Planet”
In defense of his actions, Zhao claimed he is now perhaps the most regulated person on Earth. After facing scrutiny from numerous global regulatory agencies, Zhao maintains that his conduct was compliant and that no fraud charges were ever filed against him.
He reiterated that confusing regulatory infractions with criminal activity distorts the reality of his case and misleads the public.
Industry Reaction and Public Sentiment
Reactions across the crypto industry remain mixed. Some believe Zhao is being unfairly targeted as regulators look for scapegoats amid increased oversight. Others view the situation as a reflection of accountability catching up with major crypto players.
As regulatory frameworks tighten worldwide, Zhao’s legal journey could set precedents for how other crypto executives are treated in future enforcement efforts.
Conclusion
Although no longer at the helm of Binance, Changpeng Zhao continues to be a central figure in the crypto narrative. As he pushes back against what he calls a smear campaign, his case highlights the blurred lines between regulation, reputation, and responsibility in the digital asset space.
With more developments likely, the story surrounding CZ is far from over—and may influence the direction of the entire crypto industry in the years ahead.
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