• CZ’s plea deal sparks speculation of cooperation against Justin Sun
• Lack of evidence fuels rumors amid growing regulatory scrutiny in crypto

People now debate about whether Binance’s founder Changpeng “CZ” Zhao made an undisclosed agreement with U.S. officials. In 2023, Binance CEO CZ received favorable treatment from U.S. investigators against Tron founder Justin Sun because he reportedly gave evidence to prosecutors. The cryptocurrency community studies background events that match up with these theories, though direct proof has not come forward. Here’s what we know.

As part of Binance’s legal issues CZ entered a plea deal with regulators,In November 2023 Binance agreed to pay $4.3 billion after its admission of breaking U.S. laws on anti-money laundering and sanctions handling. Under the agreement CZ resigned as CEO and admitted his fault by not implementing proper anti-money laundering measures leading to a four-month imprisonment.

This consent agreement showed crypto regulators they would step up on transactions handled by trading platforms. People wonder why the DOJ accepted minimal consequences when handling CZ despite his severe violations. Many people believe that CZ assisted authorities by providing information against Justin Sun to earn lighter federal treatment.

The Justin Sun Connection

In March 2023, the SEC officially charged Sun because he conducted unauthorized asset sales while deceiving investors. News outlets revealed that the FBI began probing Sun for fraud-related offenses throughout the following one-month period.

Justin Sun received more legal trouble from the DOJ after Binance began negotiating settlement terms. The FBI has not established links between Binance CEO CZ and their investigation of Sun, but the public suspects such connections because authorities simultaneously focused on both crypto leaders. The crypto community questions the timing of Sun’s legal problems because they started shortly after Binance reached its agreement with U.S. authorities.

The parallel timing of legal proceedings involving CZ and Sun remains a point of speculation despite the lack of official evidence that links their cooperation to Sun’s investigations. Crypto leaders face increased investigation from U.S. regulatory agencies because both Binance and Sun have dealt with charges about securities offenses and improper market conduct. 

Did CZ Cooperate with Authorities?

Most lawyers state that defendants tend to work with authorities during plea negotiations. Prosecutors are accustomed to getting information about others from defendants to shorten their sentencing terms, explains Samson Enzer, a former government lawyer. The available evidence does not show participation between CZ and Sun in this matter.

The growing conflict between crypto leaders and government officials drives rumors about their supposed deals. When validated, this conduct would erode public confidence in the business sector. 

CZ disclosing information about Justin Sun remains appealing; it lacks credible evidence to validate it. The DOJ selected Binance for investigation because of its extensive anti-money laundering problems rather than because of Sun. People’s concerns about regulatory control and shaky relationships in the crypto industry drive this speculation.

As the blockchain business sector grows, testing and following rules will become basic needs for all companies, including Finance Tron and future disruptors.