WSJ alleges CZ agreed to inform on Justin Sun in plea deal; CZ denies claims
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Publish date
Apr 13, 2025 - 12:00am
Publisher
CryptoSlate
Web URL
https://cryptoslate.com/wsj-alleges-cz-agreed-to-inform-on-justin-sun-in-plea-deal-cz-denies-claims/
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On March 22, 2023, the U.S. Securities and Exchange Commission (SEC) charged Sun and his companies for violating securities laws and engaging in fraud. The SEC alleged that the sale of TRON (TRX) and BitTorrent (BTT) tokens constituted unregistered securities offerings. The SEC further claimed that Sun engaged in illegal wash trading to inflate the price of TRX. Wash trading refers to an illegal practice where a trader buys and sells a security almost simultaneously to manipulate the market. The fake trades indicate a higher trading volume and could attract legitimate investment in the security.
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Changpeng Zhao refutes WSJ claim of testifying against Justin Sun
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CZ pleaded guilty to violating anti-money laundering laws by failing to institute proper measures to bar criminals from using the largest crypto exchange. He also resigned from his position as CEO and agreed to pay a $50 million fine. Zhao was also barred from involvement in Binance for three years. After serving a four-month sentence, CZ was released on Sept. 27, 2024. He claims that his prison sentence is proof that he did not agree to inform on Sun since “People who become gov witnesses don’t go to prison. They are protected.
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