The sentence handed down to the former Binance chief was significantly less than the three years that federal prosecutors had been seeking for him.
The defense had asked for five months of probation. The sentencing guidelines called for a prison term of 12 to 18 months.“I’m sorry,” Zhao told the
judge before receiving his sentence, per Reuters.
Zhao, who wore a dark navy suit with a light blue tie to court, is accused of willfully failing to implement an effective anti-money laundering program
as required by the Bank Secrecy Act, and of allowing Binance to process transactions involving proceeds of unlawful activity, including between
Americans and individuals in sanctions jurisdictions.
The action against Binance and its founder was a joint effort by the Department of Justice, the CFTC and the Treasury Department, though the SEC
was notably absent.In a memorandum on Apr. 23, prosecutors said that under Zhao’s control, Binance operated on a “Wild West” model.
“Zhao bet that he would not get caught, and that if he did, the consequences would not be as serious as the crime,” the memorandum stated.
“But Zhao was caught, and now the Court will decide what price Zhao should pay for his crimes.”
Zhao has gotten off much easier than former crypto rival Sam Bankman-Fried, the founder and ex-CEO of FTX.
Bankman-Fried was sentenced to 25 years in prison for crimes connected to the operation of his crypto exchange. Unlike Zhao and the charges brought
against Binance, Bankman-Fried’s bankrupt exchange faced allegations of fraud and misuse of customers funds.
Zhao has an estimated personal net worth of $33 billion, according to Forbes’ World’s Billionaires list.He is the richest inmate ever in a U.S. prison