Changpeng “CZ” Zhao, the founder and former CEO of Binance, recently wrote a letter to the judge overseeing his case, expressing remorse for his actions and acknowledging his poor decisions. This came after Zhao and Binance settled charges with the US Department of Justice in November 2023, with the DOJ now seeking a 36-month sentence for Zhao. In the letter, Zhao admitted to his failure to establish necessary compliance controls at the exchange and assured the judge that this incident would be his only involvement with the criminal justice system. Along with Zhao’s letter, 161 additional letters of support were sent to the judge from family members, friends, and associates, urging leniency.
Various individuals, including He Yi, another Binance co-founder, Zhao’s wife Yang Weiqing, and their children Rachel and Ryan, all provided letters of support for CZ. He Yi described Zhao as the guardian of the cryptocurrency industry’s “Wild West,” navigating regulatory uncertainties, and making significant philanthropic contributions. Additionally, Jessica Zhao, CZ’s sister, and Tigran Gambaryan, Binance’s Head of Financial Crime Compliance, and others, highlighted Zhao’s commitment to ethical conduct, integrity, business acumen, and philanthropy. Despite the outpouring of support from influential figures and individuals, the final decision on Zhao’s sentencing rests with the judge, who will consider the circumstances of the case before delivering a verdict.
Zhao pleaded guilty to violating money laundering requirements in the United States and resigned as CEO of Binance in November 2023. He faced a $50 million fine personally, along with larger penalties imposed on Binance as a whole. Federal sentencing guidelines initially capped Zhao’s maximum sentence at 18 months in prison, which he agreed not to appeal. Zhao remained free on a $175 million bond in the US after his guilty plea and agreement to pay $4.3 billion in fines to resolve the criminal case. Despite these measures, US prosecutors recommended a 36-month prison sentence for Zhao in a court filing on April 23, citing the severity of his deliberate violation of US law as justification for the sentence.
Despite the recommendations for a 36-month prison sentence, supporters of CZ continue to advocate for leniency, emphasizing his character, contributions to the industry, and philanthropic efforts. Figures such as former US Ambassador to China Max S. Baucus, and academics Jeremy R. Cooperstock and Ronghui Gu, have backed Zhao’s character and contributions. Sean Yang, a managing director at Morgan Stanley and member of the ruling family in the United Arab Emirates, also contributed to the support letters affirming Zhao’s positive impact. Even with the support from these influential figures, the final decision on Zhao’s sentencing will ultimately be made by the judge, after taking into account all the circumstances and factors presented in the case. CZ’s journey through the legal system continues as he awaits the sentencing verdict on April 30.
