Changpeng Zhao (CZ), founder and former CEO of Binance, apologized for “poor decisions” and accepted “full responsibility” for his actions in a letter to the judge, as reported by CoinDesk.
In November 2023, CZ pleaded guilty to failing to maintain an effective anti-money laundering program at Binance during his tenure as the company’s head. As part of an agreement with the U.S. Department of Justice, he agreed to pay a $50 million fine and step down as CEO.
Zhao posted a $175 million bail to remain free until sentencing. However, prosecutors requested a travel ban from the U.S., fearing he might flee. He was also required to surrender his Canadian passport.
Before the sentencing, scheduled for April 30, the prosecution requested a 36-month prison term for the former Binance head. Earlier, a 10-year sentence had been considered.
“There is no excuse for my failure to establish necessary compliance controls at Binance,” Zhao wrote to Judge Richard Jones.
He assured that this would be his “only encounter with criminal justice.”
In addition to Zhao’s plea, the court received 161 letters requesting leniency from family members, friends, and others. Support also came from Binance co-founder and mother of his three children, He Yi.
His sister, Jessica Zhao, a former managing director at Morgan Stanley, noted that CZ made mistakes but did not allow misuse of client funds, unlike what happened at FTX.
Vice President for Global Intelligence and Investigations at Binance, Tigran Gambaryan, also advocated for Zhao. The top executive has been in custody in Nigeria since February due to authorities’ claims against the exchange.
CZ informed the judge that he would like to support biotech startups and youth in the future.
Back in March, Zhao announced the launch of the educational platform Giggle Academy.