CZ Dismisses WSJ Report Amid Trump Pardon and Regulatory Lobbying Speculation

Binance founder Changpeng Zhao publicly dismissed a Wall Street Journal report that claimed he provided evidence against TRON founder Justin Sun as part of his plea agreement with the U.S. Department of Justice. Zhao argued that the report was part of a smear campaign, emphasizing that his reduced prison sentence for a BSA violation—being the shortest on record in such cases—was unlike typical outcomes for cooperating witnesses. In parallel, the report notes that Binance executives have been in discussions with U.S. Treasury officials, seeking to ease regulatory oversight imposed on them, and are reportedly exploring the listing of USD1, a new stablecoin linked to former President Trump and fully collateralized by short-term U.S. Treasuries. However, with stablecoins excluded from our analysis, the focus remains on TRON (TRX) due to its connection with Justin Sun. The news underlines a mix of legal, regulatory, and political factors, intertwining the reputations of key industry figures with wider market sentiments around compliance and future growth prospects.