Wall Street Journal Reports Investigation into Justin Sun
The latest report from the Wall Street Journal indicates that during the Biden administration, the U.S. Department of Justice has been investigating financial crimes allegedly committed by Tron founder Justin Sun. Binance founder Changpeng Zhao has reportedly agreed to provide evidence related to Sun’s criminal activities to the prosecutors. In response, Sun earlier stated that he has a good relationship with both Zhao and the U.S. Department of Justice, expressing trust in both parties.
(Background: Justin Sun’s $500 million unable to recover; lists the seven major violations of First Digital Trust: breach of fiduciary duty, misuse of customer funds, unlicensed investments…)
(Context: FDUSD Decoupling Storm; Justin Sun exposes FDT’s “insolvency” with officials responding by calling it a lie, Binance being wrongly affected? Complete summary)
Investigation Details
According to the Wall Street Journal, informed sources revealed that during the Biden administration, the U.S. Department of Justice has been investigating financial crimes allegedly committed by Justin Sun. It is currently unclear whether the investigation is still ongoing.
The report notes that Sun is the largest external investor in the Trump family’s cryptocurrency project, World Liberty Financial, and serves as an advisor for the project. Based on estimates from blockchain research firm TRM Labs, over half of all illegal cryptocurrency transactions last year (approximately $26 billion) occurred on the Tron blockchain.
Some insiders disclosed that Binance founder Changpeng Zhao, in a prior plea agreement with the U.S. Department of Justice, agreed to provide prosecutors with evidence related to Justin Sun’s criminal activities, a detail that had not been publicly disclosed before.
The U.S. Department of Justice declined to comment on the matter, while Sun’s representatives denied all “baseless legal allegations,” asserting that implying Tron facilitates criminal activities is “incorrect.”
Previous Legal Issues
In 2023, the U.S. Securities and Exchange Commission (SEC) filed a lawsuit against Justin Sun, the Tron Foundation, the BitTorrent Foundation, and BitTorrent (now known as Rainberry), accusing them of illegal securities sales, fraud, and market manipulation. However, following Sun’s $75 million investment in World Liberty Financial in February of this year, the SEC requested the court to suspend this fraud lawsuit.
Sun’s Response
In response to the Wall Street Journal’s report, Justin Sun tweeted earlier that he has a good relationship with Changpeng Zhao and the U.S. Department of Justice, expressing trust in both:
I am not aware of the rumors circulating online. CZ is my mentor and benefactor, providing me with attention, guidance, and direction throughout my entrepreneurial journey. To this day, his principles and style remain the highest standards I aim for as an entrepreneur.
Meanwhile, the U.S. Department of Justice has been one of our closest and most trusted partners at T3FCU. We have collaborated on numerous important cases aimed at protecting global users and punishing illegal criminal organizations worldwide.
Whether it is CZ or our partners at the Department of Justice, we always maintain direct and honest communication. I have full trust in each of them. Under President Trump’s enlightened cryptocurrency policies, the U.S. cryptocurrency industry is bound to achieve greater success. As one of the earliest chosen cryptocurrencies by the President, TRX will also benefit from this success. ALL IN USA!
Zhao’s Reaction
Changpeng Zhao responded on Twitter, stating that many people have once again informed him that the Wall Street Journal is writing another baseless hit piece about him.
Multiple people have told me again WSJ is writing another baseless hit piece about me. 4
